Monday, June 12, 2006

Euronext as national champion.

So French president Jacques Chirac has called for a rival bid to NYSE's offer for Euronext. He had proposed a "Franco-German solution" saying that a deal with Deutsche Borse would be better than the recently agreed to merger with NYSE.

Chirac and the European bankers seem to be pushing for the creation of a regional powerhouse to compete with Wall Street.

The Financial Times reported on June 7th that "France has no veto over a merger by Euronext, a Netherlands based company", but "political opposition could create headaches for the heavily regulated stock exchange operator".

Recent news from Reuters shows that German bankers are still optimistic that a deal between Euronext and Deutsche Borse can be reached.