Chances are high that 219 years old NYSE, a symbol of American capitalism may reject the increased offer of $47.98 a share bid by Nasdaq OMX/ICE.Of course,borrowing the additional amount could be a herculean task for Nasdaq,but in 2005,the company somehow managed to overcome the borrowing process when the management in Nasdaq was successful on their bid to the Inet electronics system.Yes,its very risky but at the same time,Robert Greifeld looks very confident and calm right from the beginning.
So,how much would Nasdaq OXM/ICE owe if the company managed to succeed with the bid? Well,it could be around $6.48 billion with an additional refinancing cost which would be very difficult to payback.Things are now quite different from 2005, So Mr.Greifeld should be careful.
In my view,NYSE should reject the pauper bid by Deutsche Boerse's as well as of Nasdaq OMX/ICE offer.That would be good for the general investor and shareholders in the long run. Deutsche Boerse's offer comes with a nationalistic concern while the hostile bid by Nasdaq OMX/ICE,though very attractive, would be a catastrophe for the shareholder in the long term.Splitting the company dose not makes sense to me.With piles of debt and a massive job cut on the card,the Nasdaq bid would be too povre for NYSE as well as for the economy.
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