* NYSE-Deutsche Boerse cost savings hard to match -Dan
* Dan ran CBOT when it was target of CME-ICE bidding war
* Rival bidder would need “fat pocketbook” -CBOE executive
By Ann Saphir
CHICAGO, Feb 15 (Reuters) - NYSE Euronext NYX.N, which on Tuesday agreed to a $10.2 billion takeover by Germany’s Deutsche Boerse AG (DB1Gn.DE), is unlikely to be the target of a bidding war, according to a veteran of the last bidding war for a U.S. bourse.
“I don’t see any comparable situation,” said Bernard Dan, who headed the Chicago Board of Trade in 2006-2007 when it drew competing bids from CME Group Inc (CME.O) and IntercontinentalExchange Inc.
CME ultimately acquired CBOT, but only after boosting its bid several times to win the backing of key shareholders.
Fox Business Network said earlier on Tuesday that officials from CME and Nasdaq OMX Group (NDAQ.O) are meeting to discuss “strategy to respond to the Deutsche Boerse buyout deal for the Big Board.”
The report, citing unnamed banking sources, said that a possible response would be a joint bid for the New York Stock Exchange.
NYSE Euronext shareholders should not expect any such move, Dan told a group of business leaders in Chicago.
Deutsche Boerse and NYSE Euronext have said that combining their operations would deliver $400 million in cost savings annually, and an additional $133 million in revenue. Any rival bidder would be hard put to beat those figures, Dan said.
“If you are a NYSE shareholder you are going to look at the synergy advantages associated with this potential deal,” Dan said. “Any potential partners that might introduce a hostile bid won’t be able to present that to shareholders.”
Richard DuFour, an executive vice president at CBOE Holdings Inc who spoke on the same panel as Dan, said he was skeptical that another buyer would have the financial resources to make a go.
“You’d have to have a pretty fat pocketbook to come in and pay a pretty premium to buy it,” he said.
CME managing director Rick Redding was silent on the subject during the panel discussion on Tuesday.
But CME officials in recent months have consistently told shareholders they plan to use cash to pay down debt and return money to shareholders through dividends and share buybacks, not for acquisitions.
In a statement Tuesday, the Chicago-based futures giant reiterated that it is “committed” to organic growth.
Rafay Khalid, an analyst for Standard and Poor’s equity research, dismissed the idea of a potential CME bid for NYSE, calling it “ridiculous” because CME is not interested in getting into equities trading.
CME runs the three largest U.S. futures exchanges.
A Nasdaq spokeswoman Monday declined to comment on a potential bid for NYSE Euronext. (Reporting by Ann Saphir; Editing by Gary Hill)