ICE's Sprecher: Global Exchange Deals Can Still Be Done

The top executive of IntercontinentalExchange Inc. (ICE) said that it was still possible for exchange companies to do major cross-border mergers, though satisfying a myriad of constituencies in the process has proven extremely tricky.

"It could be done at all points in my career in this industry and it can still be done," said Jeff Sprecher, ICE chief executive and co-founder, speaking at an investor event Friday. "But none of it is easy."

A clutch of large-scale exchange merger proposals -- including an attempted takeover of NYSE Euronext (NYX) backed by Sprecher himself -- fell apart over the last year due to pushback from regulators and nationalistic sentiment.

Last week the highest-profile deal of them all, NYSE Euronext's agreed combination with Deutsche Boerse AG (DB1.XE, DBOEF), was abandoned after the European Union determined the tie-up would amount to a monopoly over regional derivatives trading.

Sprecher said that success of such deals depended on satisfying the desires of shareholders, exchange customers, employees, regulators and politicians, many of whom have divergent interests.

"If you're a management team that can thread that needle and still create value for your shareholders, then it can happen," Sprecher said.

-By Jacob Bunge, Dow Jones Newswires; 312-750-4117; jacob.bunge@dowjones.com

Nasdaq (NASDAQ:NDAQ)
Historical Stock Chart
From Apr 2024 to May 2024