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Nasdaq bid for NYSE gets hostile

Monday, May 02, 2011 - 02:11

Ma y 2 -Summary of business headlines: Nasdaq, ICE make hostile bid for NYSE; Treasury takes steps to boost borrowing ability; Legal victory for TiVo; Manufacturing activity slowed in April; U.S. markets close down. Bobbi Rebell reports from New York

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Nasdaq and the Intercontinental Exchange are still not giving up on their attempts to take over the NYSE Euronext- taking their now hostile $11 billion dollar bid directly to the NYSE shareholders. The NYSE's board has twice rejected previous bids in favor of a lower-valued friendly bid by Germany's Deutsche Boerse. Ted Weisberg of Seaport Securities is a shareholder at the NYSE: SOUNDBITE: TED WEISBERG, PRESIDENT, SEAPORT SECURITIES, (ENGLISH) SAYING: "We, I, Seaport, myself my family owned memberships in the old NYSE so we by definition have a lot of NYX stock so clearly we have an axe to grind and from a stock holder standpoint I think we would like to see the most money that we can get for our stock. " Treasury Secretary Timothy Geithner said the U.S. Treasury will take extraordinary measures- including steps to access federal pension funds- to give the country more room to borrow before it bumps up against the legal debt limit on May 16th. The special move will allow the Treasury to extend borrowing authority until about August 2nd instead of July 8th before it would begin defaulting on its obligations. A big legal victory for TiVo. Dish Network and EchoStar will pay TiVo $500 million dollars to settle a patent infringement lawsuit- ending a battle that began in 2004. TiVo says the settlement will change the company's earnings profile substantially. U.S. manufacturing activity slowed in April for the second straight month. But that data, from the Institute for Supply Management, was better than expected. Reaction in the markets to the death of Osama bin Laden was tepid- despite opening higher, US markets closed slightly lower. In Europe: there were slight gains in thin trading as merger deals and the death of bin Laden pushed the markets higher. In London markets were closed for a national holiday. Bobbi Rebell, Reuters

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Nasdaq bid for NYSE gets hostile

Monday, May 02, 2011 - 02:11