Deutsche Boerse, NYSE Sweeten Takeover Deal

Reuters

Deutsche Boerse AG and NYSE Euronext on Tuesday offered a special dividend as a way to persuade shareholders to approve a deal between the New York and Frankfurt-based companies.

The special dividend of 2.00 euros per share in a newly combined company will be offered shortly after closing of the deal, which would create the world's largest exchange operator.

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The dividend was offered despite the fact that rivals Nasdaq OMX Group and IntercontinentalExchange dropped a competing offer.

Deutsche Boerse's shareholders are set to control 60 percent of the new company and Deutsche Boerse Chief Executive Reto Francioni will assume the role of chairman, while Duncan Niederauer, currently head of NYSE Euronext, will become chief executive of the combined company.

"The ability to provide a special dividend underscores the strength of the combined group," Niederauer said.

Earlier this year Francioni had brushed aside suggestions the company was poised to sweeten its offer.

"We have a signed merger agreement ... which was fully negotiated over a long period of time," Francioni told analysts at the time. "We stand by the terms of the agreement and we are working towards a timely closing."

In a separate move announced on Tuesday, Deutsche Boerse said it had struck a deal with Switzerland's SIX Group to take full control of derivatives arm Eurex. 1/8ID:nWEA4946 3/8

(Reporting by Edward Taylor)

((edward.taylor@thomsonreuters.com; +49 69 7565 1187; Reuters Messaging: edward.taylor.thomsonreuters.com@reuters.net))

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