Quantcast

Archipelago Shares Skyrocket On Takeover From NYSE

Get the WebProNews Newsletter:


[ Business]

Archipelago Holdings shares went up 55% after the announcement that the company agreed to be taken over by the New York Stock Exchange.

The New York Stock Exchange (NYSE) has entered a merger agreement with the Archipelago Exchange (ArcaEx) which will lead to the combined entity, NYSE Group, Inc., becoming a publicly-held company.

According to a Bloomberg article,

“Archipelago rose as high as $29 and was trading at $26.41 at 11:01 a.m. New York time. The Chicago-based company’s market value rose to $1.3 billion from about $884 million yesterday.

Investors said the transaction, which values the combined companies at $4.3 billion based on Archipelago’s current stock price, benefits both sides. Archipelago, led by chairman and chief executive Gerald D. Putnam Jr., will become part of the world’s biggest stock exchange, a market for 2,760 listed companies and more than 90 million investors. The NYSE gets access to electronic- trading technology and the ability to handle a range of securities other than stocks.”

“It’s a very rich deal for Archipelago,” said Brendan Caldwell, chief executive of Caldwell Securities. “The 220-year-old New York Stock Exchange is being valued at just over twice what the 8-year-old is being valued at.”

Out of the deal, NYSE seat owners will get $400 million distributed amongst them, plus 70% of the shares in NYSE Group, Inc.

WebProNews | Breaking eBusiness News
Your source for investigative ebusiness reporting and breaking news.

Archipelago Shares Skyrocket On Takeover From NYSE
Comments Off on Archipelago Shares Skyrocket On Takeover From NYSE
Top Rated White Papers and Resources

Comments are closed.

  • Join for Access to Our Exclusive Web Tools
  • Sidebar Top
  • Sidebar Middle
  • Sign Up For The Free Newsletter
  • Sidebar Bottom