Post by jannikki on Dec 6, 2005 18:42:18 GMT -4
NYSE Seat Owners Vote to Buy Archipelago
Tuesday December 6, 5:09 pm ET
By Michael J. Martinez, AP Business Writer
NYSE Seat Owners, Archipelago Shareholders OK Deal Turning Big Board Into For-Profit Enterprise
NEW YORK (AP) -- Seat owners of the New York Stock Exchange voted Tuesday to acquire Archipelago Holdings Inc. in a $9 billion deal that will turn the 213-year-old Big Board into a for-profit enterprise with high-tech computerized trading capabilities.
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As expected, more than 95 percent of the seat owners who voted approved the deal, according to the exchange, with more than 90 percent of members voting. There are 1,366 seats on the exchange.
"This is a truly historic day for the New York Stock Exchange and an event of great importance for our future and that of our customers and Americas capital markets," NYSE Chief Executive John Thain said in a statement. "This transaction gives the NYSE a strong platform for future growth, value creation, and competitive positioning on a global basis."
Archipelago shareholders, meeting in Chicago, approved the deal Tuesday morning, the company said in a statement. A spokeswoman for Archipelago said the company did not plan to release a vote tally.
Under the agreement, NYSE seat owners will receive more than $5 million for each seat, though only $300,000 of that will be in cash. The rest will be stock in the new company, which seat owners will be restricted in selling for up to three years. Archipelago shareholders will have their shares transfered to the new company, to be called The NYSE Group Inc., on a one-for-one basis.
The new company will have the capability to not only trade stocks listed at the NYSE, but also Nasdaq-listed and over-the-counter stocks through Archipelago's all-electronic trading system. The deal also increases the exchange's market share in exchange-traded funds and derivatives trading.
While NYSE seat owners roundly approved the deal, a small group of dissidents, led by longtime seat owner William Higgins, had fought the deal in court, saying Goldman Sachs Group Inc.'s involvment in advising both Arca and the NYSE led to severe conflicts of interest.
Higgins settled last month after the NYSE agreed to have Citigroup author a fairness opinion on the deal. Citigroup concluded that the deal was fair to all involved.
Archipelago shareholders have seen the value of their stock quadruple since the merger was announced April 20, while the value of seats on the exchange rose from $975,000 in January to a record $4 million last week. Two more seats sold for that amount Tuesday before the vote.
As the NYSE prepares to take on all-electronic rival Nasdaq Stock Market Inc., investors are likely to benefit from better transaction speeds as well as lower fees as the two major markets compete for business.
The New York Stock Exchange: www.nyse.com
Archipelago: www.arcaex.com
Tuesday December 6, 5:09 pm ET
By Michael J. Martinez, AP Business Writer
NYSE Seat Owners, Archipelago Shareholders OK Deal Turning Big Board Into For-Profit Enterprise
NEW YORK (AP) -- Seat owners of the New York Stock Exchange voted Tuesday to acquire Archipelago Holdings Inc. in a $9 billion deal that will turn the 213-year-old Big Board into a for-profit enterprise with high-tech computerized trading capabilities.
ADVERTISEMENT
As expected, more than 95 percent of the seat owners who voted approved the deal, according to the exchange, with more than 90 percent of members voting. There are 1,366 seats on the exchange.
"This is a truly historic day for the New York Stock Exchange and an event of great importance for our future and that of our customers and Americas capital markets," NYSE Chief Executive John Thain said in a statement. "This transaction gives the NYSE a strong platform for future growth, value creation, and competitive positioning on a global basis."
Archipelago shareholders, meeting in Chicago, approved the deal Tuesday morning, the company said in a statement. A spokeswoman for Archipelago said the company did not plan to release a vote tally.
Under the agreement, NYSE seat owners will receive more than $5 million for each seat, though only $300,000 of that will be in cash. The rest will be stock in the new company, which seat owners will be restricted in selling for up to three years. Archipelago shareholders will have their shares transfered to the new company, to be called The NYSE Group Inc., on a one-for-one basis.
The new company will have the capability to not only trade stocks listed at the NYSE, but also Nasdaq-listed and over-the-counter stocks through Archipelago's all-electronic trading system. The deal also increases the exchange's market share in exchange-traded funds and derivatives trading.
While NYSE seat owners roundly approved the deal, a small group of dissidents, led by longtime seat owner William Higgins, had fought the deal in court, saying Goldman Sachs Group Inc.'s involvment in advising both Arca and the NYSE led to severe conflicts of interest.
Higgins settled last month after the NYSE agreed to have Citigroup author a fairness opinion on the deal. Citigroup concluded that the deal was fair to all involved.
Archipelago shareholders have seen the value of their stock quadruple since the merger was announced April 20, while the value of seats on the exchange rose from $975,000 in January to a record $4 million last week. Two more seats sold for that amount Tuesday before the vote.
As the NYSE prepares to take on all-electronic rival Nasdaq Stock Market Inc., investors are likely to benefit from better transaction speeds as well as lower fees as the two major markets compete for business.
The New York Stock Exchange: www.nyse.com
Archipelago: www.arcaex.com