NYSE Euronext CEO: Exchanges Face Goodwill Challenge
February 11 2009 - 9:27AM
Dow Jones News
The top executive at NYSE Euronext (NYX) said Wednesday that
other exchanges face potential goodwill charges following a sharp
reversal in sector valuations.
Duncan Niederauer, chief executive of the transatlantic exchange
operator, said deals done over the past two to three years could be
prone to write-offs.
NYSE Euronext this week announced a $1.59 billion non-cash
charge for goodwill and other assets stemming from its creation in
2007 from the merger of NYSE Group and Euronext-Liffe.
CME Group Inc. (CME) and IntercontinentalExchange Inc. (ICE)
have also announced write-offs on some exchange investments.
Sector valuations have fallen around 70% from 52-week highs amid
a broad slide in financial stocks and slowing volume growth,
notably in derivatives.
Niederauer, in opening remarks at the company's investor day,
said "other exchanges will have to address" the goodwill issue,
suggesting more write-offs were likely to follow in a sector that
has seen substantial consolidation over the past three years.
-By Doug Cameron, Dow Jones Newswires; 312-750-4135;
doug.cameron@dowjones.com