Nasdaq plans for rival NYSE bid hit snag: report
NEW YORK (Reuters) - Nasdaq OMX Group Inc's (NDAQ.O) plans to launch a rival bid for NYSE Euronext faces hurdles as differences with potential partner IntercontinentalExchange Inc (ICE.N) persist, the Wall Street Journal reported on its website on Thursday.
Uncertainty in global markets that has led banks to tighten lending terms is also affecting financing for a rival bid to challenge NYSE Euronext's more than $9 billion deal with Deutsche Boerse (DB1Gn.DE), the paper said, citing unnamed sources.
Nasdaq and ICE have not agreed on how to share the risk in an offer, the paper reported. It added that at least one Nasdaq director opposed an offer.
These issues have thrown the timing and the possibility of an offer in doubt, the paper said.
Nasdaq was not immediately available for comment, while an ICE spokeswoman declined to comment.
Sources told Reuters earlier this week that Nasdaq was working on an offer along with ICE that could value NYSE Euronext between $10 billion and $13 billion.
A source said on Tuesday an offer could come this week, but characterized the situation as being in flux.
Experts have said that Nasdaq has an uphill battle in making a counterbid for NYSE Euronext, facing issues such as funding a complicated deal and convincing Big Board shareholders that it's better than Deutsche Boerse's offer.