Law Firms Scrutinizing NYSE Euronext's Planned Nyfix Purchase
September 05 2009 - 12:58AM
Dow Jones News
Several law firms are targeting NYSE Euronext's (NYX) planned
acquisition of trading technology company Nyfix Inc. (NYFX),
suggesting that the $144 million deal could be unfair to Nyfix
shareholders.
The Law Offices of Howard G. Smith and Finkelstein Thompson LLP
both announced late Friday that they were opening investigations
into the deal, seeking to recruit Nyfix shareholders as they mull
legal action.
The announcements come after Wolf Haldenstein Adler Freeman
& Herz LLP revealed on Aug. 28 its own inquiry into the planned
acquisition.
An NYSE Euronext spokesman declined comment Friday.
The transatlantic exchange operator moved last week to acquire
Nyfix, a provider of brokerage services and trade stations,
planning to purchase its shares at $1.675 each, a 95% premium to
the Aug. 26 closing price.
The firms' investigations center on the fairness of the price
NYSE Euronext will pay for Nyfix, which includes preferred stock.
In a release, Finkelstein Thompson LLP noted that shares in Nyfix
were $3.75 one year ago.
Nyfix's stock has been badly beaten down in the financial
crisis, declining 74% for the past year through Aug. 26. But the
last 12 months only steepened what has been a multi-year slide for
Nyfix shares, which traded above $45 in 2000. Shares closed Friday
at $1.64.
Upon closure of the transaction, expected in the fourth quarter,
Nyfix will become part of NYSE Euronext Technologies. The exchange
operator looks to tap into Nyfix's established network of pension
funds and asset managers that rely on the company to facilitate
pre-trade communication with brokers.
NYSE Euronext shares closed about 1% higher Friday at
$27.61.
-By Jacob Bunge, Dow Jones Newswires; 312-750-4117;
jacob.bunge@dowjones.com