FRANKFURT (Reuters) - Deutsche Boerse (DB1Gn.DE) will avoid forced layoffs in its planned merger with NYSE Euronext NYX.N, and employees will choose the merged exchange operator’s name, Deutsche Boerse chief executive Reto Francioni has said.
Francioni told the Frankfurter Allgemeine Sonntagszeitung newspaper, according to an advance release from Sunday’s edition, that a competition had already been started for employees to find a name, one of the sensitive issues in the proposed merger.
Concerns have been expressed on both sides of the Atlantic about a loss of influence in either New York or Frankfurt, and politicians and regulators are scrutinizing the merger.
Last month Senator Charles Schumer, a senior Democratic member of the Senate Banking Committee, said the name of the combined company -- and whether NYSE’s name came before that of Deutsche Boerse -- was a “critical factor” for him in deciding whether to back the deal.
Schumer had insisted that “NYSE” must have first billing for business and branding reasons.
Francioni played down the prospect of aggressive cost cuts.
“We have never used compulsory redundancies, and will not in the future,” he told the paper.
German labor representatives have expressed fears that jobs will be lost in Frankfurt.
In February, the Economics Ministry in the state of Hessen -- the body which awards Deutsche Boerse its operating license -- said it would “seek to preserve the interests of Frankfurt as a financial center” when it reviews the merger plans.
Reporting by Edward Taylor; Editing by Kevin Liffey