Euronext-NYSE merger under fire over rules

Dutch institutional investors, such as pension funds, are opposed to the planned $14bn merger between Euronext and the New York Stock Exchange, the Financieele Dagblad reports today. The paper says investors are threatening to vote against the deal next week – unless they get more guarantees that Dutch bourse-listed companies will not be liable to tougher US accounting rules.

Euronext is made up of the Amsterdam, Brussels, Paris and Lisbon stock exchanges.
‘Before we approve the deal, we want more guarantees that there will be no ‘spill over’ from US stock exchange rules into Europe,’ Erik Breen, head of Corporate Governance at fund manager Robeco, told the paper.
The merger still has to be approved by finance minister, Gerrit Zalm, who said last week there was a ‘reasonable’ chance he would do so – but wasn’t giving any guarantees. Euronext shareholders will vote on the merger next week.
However, the FD says the chances of blocking the deal are small because most Euronext shares are in the hands of big hedge funds which are only interested in direct financial results.

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