ISS Proxy Services give thumbs-up to DB/NYSE deal

Proxy this! Advisory firm ISS Proxy Services recommended NYSE Euronext shareholders vote in favor of the planned merger with Deutsche Böerse AG ahead of a key shareholder decision on the deal July 7. The recommendation follows the endorsement of another proxy advisory firm, Glass Lewis, and adds further momentum behind a transaction that had been in doubt as recently as last month, when a rival bid for NYSE was being aggressively pursued by IntercontinentalExchange (ICE) and Nasdaq OMX Group (NDAQ), which aimed to split the company in two and streamline operations to make the pieces more profitable.

The ISS report highlighted, “The highly complementary businesses” of NYSE Euronext and Deutsche Böerse. “In particular, the combined company would have a stronger presence in risk management and global venue for capital raising,” it said. NYSE Euronext and Deutsche Böerse have from the start termed their deal a merger of equals, despite the larger size of the German exchange company. ISS said that NYSE shareholders would get significant board and management representation with seven of 17 board seats and the company's chief executive, Duncan Niederauer, slated for the CEO role in the combined exchange group, which has not yet been named.

NYSE Euronext shareholders will vote on the combination with Deutsche Böerse, agreed in mid-February, at a special meeting on July 7, about a week before Deutsche Böerse shares are due to be tendered in favor of the deal.

NYSE Euronext (NYX : NYSE : US$32.65), Net Change: 0.78, % Change: 2.45%, Volume: 3,616,086

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