Euronext to list on its Dutch, French and Belgian exchanges in IPO: source

LONDON Wed May 7, 2014 2:15pm EDT

LONDON (Reuters) - Euronext, which is being spun off by IntercontinentalExchange (ICE.N), will be listed on three of its exchanges in a stock market listing scheduled for June, a source familiar with the matter said on Wednesday.

Euronext shares will be quoted on its markets in the Netherlands, Belgium and France following the initial public offering (IPO), which sources have said could value the company at 1.5 billion euros ($2.1 billion).

It will later also list its shares on its Lisbon exchange, the source added.

A spin-off of Euronext has been expected since ICE's $11 billion deal last year to take over NYSE Euronext, parent company of the New York Stock Exchange.

The source said Euronext's London exchange will seek recognized investment exchange (RIE) status from Britain's Financial Conduct Authority following the spin off. The London market previously operated under an exchange license owned by Liffe - Europe's second largest derivatives exchange now held by

ICE.

As an RIE Euronext can list companies and products, including exchange-traded funds. The move will intensify competition with rivals London Stock Exchange (LSE) (LSE.L) and fellow pan-European exchange Bats Chi-X.

Reuters reported last month that Euronext had secured a eight "anchor" investors to take a 25-30 percent stake in the group when it makes its stock market debut.

The group of investors comprises BNP Paribas (BNPP.PA), Societe Generale (SOGN.PA), Caisse des Depots CDCEC.UL, ING (ING.AS), ABN Amro ABRGPG.UL, Banco Espirito Santo (BES.LS), the Belgian government investment vehicle SFPI and Belfius bank SFDPIA.UL, sources said at the time.

Euroclear, one of the two main clearing houses for securities traded in Europe alongside Deutsche Boerse's (DB1Gn.DE) Clearstream, is also expected to join the consortium, one source said.

The names of the investors will be confirmed in the prospectus for its IPO, which is expected within weeks.

ICE and Euronext will maintain some links, with the European exchange group planning to rent space in the futures giant's UK-based data centre in an effort to minimize costs, but still allow its clients to benefit from co-location - being physically closer to an exchange's data centre to speed up the time it takes to execute a trade - the source said.

Further cost savings could come from renegotiating contracts it inherited as a part of NYSE, for example its agreement with clearing house LCH.Clearnet, which is majority-owned by the LSE, the source added.

ICE is expected to save $500 million through selling off Euronext, which is not seen as core to its business strategy.

ICE also plans to wind down NYSE's technology unit.

($1 = 0.7183 Euros)

(Editing by Alexander Smith and Louise Heavens)

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