Are We Really Going to Let Some Germans Buy the NYSE?

How long until the IASB has offices in Kansas and the Utah mountains?


Nasdaq OMX Group was assessing whether it can compete against Germany's exchange operator Deutsche Borse to buy the New York Stock Exchange, The Wall Street Journal reported Wednesday, citing people familiar with the matter.

If the New York-based Nasdaq decides it cannot mount a strong rival bid, it was looking to buy another exchange or sell itself to avoid marginalization in the wake of the tie-up between the NYSE and its German suitors, these people said.

And if Nasdaq can't come up with the cash, there's always a lawsuit:

NYSE Euronext, the parent company of the New York Stock Exchange, and Deutsche Boerse AG were sued by a Big Board shareholder who hopes to stop its planned $9.53 billion sale to the German company.

The proposed deal, which would create the largest owner of equities and derivatives markets, undervalues NYSE and is structured to discourage competing bids, the shareholder, James Benson, said in a complaint filed Feb. 18 in New York State Supreme Court in Manhattan.

“The proposed sale is wrongful, unfair and harmful to NYSE public shareholders, and represents an effort by defendants to aggrandize their own financial position and interests at the expense of” investors, Benson’s lawyers wrote.

Good to see that the American way is still alive and well, even if it is available for sale to Europeans.

Some have dared to suggest that the economic events of the last three years were little more than an engineered demolition intended to destroy financial sovereignty around the world and usher in globalization in all her disgusting glory. But reasonable people (JDA considers herself one most days of the week) know that this came out of nowhere because really, who could have known questionable mortgages and securitized everything would blow up in our faces?!

Of course there's no reason to waste a good crisis and God is this the motherfucking humdinger of crises.

But when does it end? When we start auctioning off ad space on the Washington Monument for BMW and BP?

taxgirl had a great write-up on the possible NYSE/Deutsche Boerse deal entitled What's Next? The KLM Liberty Bell? which sheds a little light on the move, which probably has less to do with paying the bills and more with trying not to pay Treasury's bills:

Why the Netherlands? It’s not the windmills and the tulips. It’s the tax structure. The Dutch do not, as a rule, tax global profits; under the U.S. Tax Code, U.S. companies are taxed on their worldwide profits. Additionally, the corporate tax rate in the Netherlands is less than that of Germany or the U.S.

Of course, for their part, both companies aren’t saying the move was contemplated because of taxes. But c’mon. It totally is.

The Netherlands has long been a magnet for taxpayers seeking to lower their tax bills. Our office refers to the country as the “Delaware of the EU” for its favorable corporate and tax climate. The country has been successful in its attempts to woo corporations and artists (like U2 and the Rolling Stones) by adjusting its tax laws.

The U.S., on the other hand, has become increasingly heavy-handed in its treatment of U.S. based companies. I should know, I am one.

I, for one, welcome our future Euroasian overlords and would like the record to reflect that my part Dutch ass can't eat french fries without mayo. You know, in case it comes down to that.

Jr Deputy Accountant

Some say he’s half man half fish, others say he’s more of a seventy/thirty split. Either way he’s a fishy bastard.


wcv said...

Capitain America's been torn apart
Now he's a court jester
With a broken heart
He said turn me around
And take me back to the start

cjn said...

Your nationalism is warming my heart. I must admit, however, French fries without mayo is a tragedy.

Bob English said...

Doesn't matter who owns whom, The Authors already control most of the exchanges.

Nice Pulp Fiction reference at the end. Oh, wait...