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Euronext still considering possible BME takeover
Posted on Thursday, 13 February 2020 14:14
European stock exchange operator Euronext has said it is still mulling over the possibility of acquiring Spanish peer BME.

Reuters quoted the prospective suitor’s chief executive, Stephane Boujnah, as saying no decision has been made as yet and that the firm will wait as long as possible before doing so.

Speaking to reporters, he said that, at present, all of the various parameters relating to a potential transaction are under consideration.

One factor which may have an affect is the bid for BME which has been lodged by Swiss exchange operator SIX.

The Zurich-based firm submitted an approach to acquire the Spanish exchange operator back in November, under the terms of which it would pay EUR 34.00 per share in cash for the business, thereby valuing the deal at EUR 2.84 billion.

Following that offer, Euronext said it was in talks over a potential purchase of BME, but did not give any indication of how much it might pay.

However, Reuters quoted finance chief Giorgio Modica as saying a EUR 3.00 billion bid for the business would need to include a shares component, as opposed to being entirely in cash.

In addition, Deutsche Boerse has been linked with a bid.

A person in the know told Reuters that SIX’s offer is not likely to be approved by the relevant Spanish authorities before May of this year; other sources said Euronext could wait until some indication is given on whether the Swiss deal is likely to go ahead before deciding to lodge its own approach.

SIX’s offer for BME was the most valuable deal targeting a securities and exchange operator to have been announced during 2019 and accounted for 38.7 per cent of the total value of deals targeting the sector over the 12 months, according to Zephyr, the M&A database published by Bureau van Dijk.

© Zephus Ltd