Deutsche Boerse ups synergy goal for NYSE again

Shareholders arrive for the annual shareholders meeting of German Stock Exchange Deutsche Boerse in Frankfurt May 12, 2011.

FRANKFURT (Reuters) - Deutsche Boerse (DB1Gn.DE) told shareholders on Thursday it could make an extra 50 million euros ($70 million) in revenues if it merged with NYSE Euronext as it tried to drum up support faced with a competing U.S. bid.

Chief Executive Office Reto Francioni urged shareholders to accept the deal as opposition to it builds among his employees and as Nasdaq (NDAQ.O) and ICE (ICE.N) work on a $11.1 billion counter-offer for NYSE Euronext (NYX.N).

Addressing the company's AGM, Francioni said: "We have made progress in recent days with NYSE in calculating revenue synergies.

"Through progressive introduction of clearing capabilities of Deutsche Boerse across the whole group and extension of risk management to all our cash and derivatives markets, additional revenue potential will be tapped," he added.

Since launching the bid, Deutsche Boerse has increased its forecast annual synergies by more than a third. It now expects 150 million euros ($210 million) in annual revenue synergies. Last month it raised its expected annual cost synergies to 400 million euros from 300 million.

The deal -- which will not be voted on during Thursday's AGM -- has drawn skepticism on both sides of the Atlantic as stakeholders and politicians fear that the respective other party will gain the upper hand.

Deutsche Boerse shareholders have until July 13 to tender their shares.

NYSE shareholders are scheduled to vote on the Deutsche Boerse deal on July 7.

DOMESTIC OPPOSITION

The new cost-cutting projections caused a stir among the company's workers. Its works council urged shareholders to reject a deal with NYSE Euronext on Wednesday and said the merger would hurt the German exchange operator's business model.

"Protests rather indicate that significant cuts into the existing infrastructure and thus significant cost synergies are indeed realistic," said analyst Silvia Quandt analyst Christian Muschick.

He added he believed the works council had only limited opportunities to influence the merger process.

Labor opposition could hurt Deutsche Boerse's campaign to convince German regulators that the deal does not weaken Frankfurt as a financial center.

Deutsche Boerse shares were down 1.2 percent by 1347 GMT, in line with the German blue chip index .GDAXI, which was down 1.6 percent.

(Additional reporting by Kerstin Leitel; Editing by David Cowell, Mike Nesbit and Sophie Walker)