Euronext Seeks to Tie Up Milan Merger Before New York Deal

Jun 05, 06:43 PM

Current Headlines: EXECUTIVES of pan-European stock exchange Euronext will arrive in Milan tomorrow in a bid to agree a merger of the Italian bourse before their own $20 billionplus (Pounds 10.6 billion) tie-up with the New York Stock Exchange is sealed this autumn.

Adding the Milan bourse to existing Euronext markets in Paris, Amsterdam, Brussels and Lisbon, as well as the Liffe derivatives exchange in London, would reinforce the European end of Euronext ahead of the NYSE deal.

Euronext chief executive Jean-FranAois ThEodore said the Italian bourse, headed by Massimo Capuano, has already contacted Euronext to seek a merger.

"We have opened talks with their directors. It's not impossible that their trading platform joins Euronext before the merger with NYSE is effective," he said.

Italy's Prime Minister, Romano Prodi, has already given his blessing to a deal, which has the backing of the Bank of Italy.

The Milan bourse has chosen a merger with Euronext in preference to flotation, which it has been preparing with a target valuation of between e1 billion and e1.3 billion (Pounds 686 million and Pounds 893 million). Milan ranks sixth in Europe by capitalisation of companies quoted there. They are valued at e861 billion.

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