(May 24) — “The plan to merge the London and Frankfurt stock exchanges moved a step forward today when the supervisory board of the German exchange voted to approve the deal,” writes Edmund L. Andrews in today’s New York Times.
“The vote, 17 in favor with 4 abstentions, came despite anxieties in each financial center that the merger would lead to the gain of one at the expense of the other.”
“Deutsche Börse A.G., parent of the Frankfurt stock exchange, said after the vote that the merger with the London Stock Exchange should be formally completed by the end of the year. The deal must still get at least 75 percent of the vote at the company’s annual shareholders meeting in September.”
“The supervisory board vote was a significant victory for the German exchange’s chief executive, Werner Seifert, who has sought relentlessly to create a pan-European exchange that would offer trading in securities from around the Continent.”
“Several board members of Deutsche Börse had criticized the plan and some were pushing for a delay in the vote until more details could be worked out.”
“But Mr. Seifert prevailed over the doubters, and won support today from regulators in the state of Hesse, which includes Frankfurt, the country’s banking and financial center. The regulators had raised questions about the deal last Friday.”
“But the job of completing the merger is far from over.”
“The two exchanges have yet to settle many important points, including their plans for an additional alliance with Nasdaq, the American electronic trading system.”
“Executives also face challenges in selling the merger in Britain. The London Stock Exchange is still owned by its many varied members, and smaller brokerage firms feel threatened by the plan.”