Nagoya Corp: Deutsche Boerse Merger Fails.
Nagoya Corp has learned that Deutsche Boerse will be seeking new partners after the collapse of its proposed $7.4 billion merger with NYSE Euronext. Deutsche Boerse CEO Reto Francioni believes that they cannot survive long term without bringing in a partner and are actively seeking further alliances.
Johannes Witt, supervisory board member, has hinted that there could be a change of key personnel, “Can someone who failed in relying on a partner to change the status quo lead this company in the future. This result poses the question of consequences for personnel .” Francioni has said that he has no intention of stepping down and Nagoya Corp believes he will fight any attempt to deny him his 2011 bonus.
Francioni also attacked the decision by the European Commission to block the merger and refused to rule out a legal challenge to the decision. He claimed that the Commission’s decision that the new merged entity would hold a dominant derivates market position, as it ignored the large amount of trading carried out directly amongst the banks.
Analysts at Nagoya Corp expect Deutsche Boerse to concentrate expansion on areas such as risk management, collateral management, international growth as well as derivates clearing.
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