Deutsche Börse has told the European Commission it intends to press on with plans for a pan-European federal stock exchange as a takeover of rival Euronext by NYSE Group looms.
The Frankfurt exchange operator said yesterday it had told the Commission about its proposal to merge with Euronext and to include Borsa Italiana in the tie-up.
Borsa Italiana said later it had signed a letter of intent with the German exchange to create a federal bourse that would include Euronext.
However, analysts and exchange experts expect Euronext to go ahead with its plans to merge with NYSE Group, the operator of the New York Stock Exchange.
"It's a great stalling tactic, and takes attention away from the deal that actually is happening," said one analyst who declined to be named.
A spokesman for Euronext declined to comment yesterday. Under its agreement with the NYSE, however, the exchange is precluded from making any agreement with a third party unless it gets a higher takeover offer.
A source close to the process said there had been no contact with Euronext and it was not clear what offer the Italians and Germans were proposing, if any.
The move comes at a time of intense pressure for stock exchanges to combine as margins continue to shrink and new regulation pledges greater transparency and a potentially greater burden on market operators.
