UPDATE 2-NYSE Euronext to acquire American Stock Exchange

(Adds details, background, quotes)

By Mark McSherry

NEW YORK, Jan 17 (Reuters) - Transatlantic exchange NYSE Euronext (NYX.PA: Quote, Profile, Research, Stock Buzz) (NYX.N: Quote, Profile, Research, Stock Buzz) said on Thursday it agreed to acquire the American Stock Exchange (Amex) for $260 million in stock to boost its options business, exchange traded funds (ETFs) and cash products.

Exchanges worldwide have embarked on a consolidation spree to expand into new markets.

NYSE Euronext operates the New York Stock Exchange and runs bourses in Paris, Amsterdam, Brussels, Lisbon and operates the Euronext.Liffe derivatives exchange.

Both the NYSE and Nasdaq Stock Market Inc NDAQ.O have been keen on expanding to the options markets, which offer higher margins than stock markets.

Nasdaq recently agreed to buy the Philadelphia Stock Exchange for about $652 million and to pay about $61 million for the Boston Stock Exchange.

"I think the overall consolidation game within the U.S. exchange market will continue following the trend of 2007 and I would be surprised if any of the regional exchanges remain independent by the end of 2008," said Sang Lee, managing partner of Aite Group in Boston.

Thursday's deal is expected to close in the third quarter of 2008 and to boost NYSE Euronext's 2009 earnings. The transaction has to be approved by Amex members and regulators.