Sen. Charles Schumer wants ‘New York’ first in name of merged U.S.-German stock exchange parent
New York’s senior U.S. senator wants assurance that a merger between the New York Stock Exchange and Germany’s Deutsche Boerse would keep “New York” first in the combined parent company’s name.
Sen. Charles E. Schumer said Sunday that although there were “a number of things to like” about the potential combination, the name of the new entity could be a deal breaker for him.
“It is totally logical to keep the NYSE name first,” Schumer, a Democrat, said in a statement. “If for some reason, the Germans sought an alternative option, it could be an indication that they are trying to wield an upper hand in the new company and would seek to make other business decisions that could go against New York.”
The Big Board’s parent, NYSE Euronext, and German stock exchange operator Deutsche Boerse announced last week that they were in merger talks that would give Deutsche Boerse shareholders as much as 60% ownership of the combined company.
But the companies said they anticipated that the new firm would have dual headquarters in New York and Frankfurt, Germany, and that current NYSE Euronext Chief Executive Duncan Niederauer would be CEO. An announcement of a deal is expected this week.
A rumor over the weekend was that the new firm would be called DB NYSE Group. But NYSE Euronext and Deutsche Boerse said in a statement that “no name has been finalized.”
NYSE Euronext was formed in 2007 when the NYSE’s parent firm bought Euronext, a group of exchanges that included the Paris and Brussels stock markets. It is based in New York.
“Some may say what’s in a name, but I say a lot,” said Schumer, who spoke with Niederauer on Friday and Saturday. “The New York Stock Exchange is a symbol of national prestige.
“Keeping NYSE first in the name is the right thing to do from a business perspective as well. The New York Stock Exchange is the one of the most trusted, preeminent brands in the financial world, with cachet that money simply cannot buy. It would not be in the best interests of the combined company to dilute that brand.”
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