The exchanges told Barroso that failure to approve thetakeover would place European exchanges at a competitivedisadvantage, according to a copy of a letter sent seen byBloomberg News. The decision would hurt the creation oftransparent European markets and drive business to more lightlyregulated regions, they said in the letter.
Should the combination be prohibited, ��the globalconsolidation of exchanges might very well shift the balancetowards countries favoring light-touch regulation, which wouldseverely endanger the European Commission��s agenda,�� theexchanges said. ��Approving the proposed combination of DeutscheBoerse and NYSE Euronext (NYX) would significantly increase thelikelihood that the European Union��s regulatory philosophy wouldbecome the global standard.��
Chief Executive Officers Duncan Niederauer and Reto Francioni are fighting antitrust concerns, appealing directly topoliticians and other European regulators as they seek tosalvage their plan to create the world��s largest exchangecompany. Two people familiar with the talks told Bloomberg lastmonth that concessions offered by the exchanges didn��t go farenough and negotiators for the European Commission planned toprohibit the deal.
��Bridgehead of Integrity��
The exchanges ��have shown themselves to be a bridgehead ofintegrity and transparency against a tidal wave of opacity andgreed that permeates the less-regulated segments of financialmarkets,�� the letter said. The combination will ��offer aunique opportunity to deepen regulatory cooperation and reducethe risk of regulatory arbitrage,�� it said.NYSE and Deutsche Boerse still have room to maneuver.Before deciding whether to approve or block a deal, the EuropeanCommission must consult! competi tion agencies from the EuropeanUnion��s 27 member nations, who are scheduled to meet Jan. 17,according to a person familiar with the situation.
Commissioner Vote
Commissioners from each EU country must also vote on adecision and executives can appeal a merger ban at the EUcourts. Companies including Oracle Corp. have managed tocomplete deals to which the European Commission had initialobjections.The European Commission will decide on the deal on Feb. 1,EU Competition Commissioner Joaquin Almunia, the EU��s antitrustchief, told France24 radio in an interview today.
��We��re going to decide on Feb. 1 here at the commission,��he said. ��We don��t think of the interests of the exchanges��shareholders, we think above all of the interest of citizens, wethink of the companies who need capital, of the countries, ofthe national economies of Europe who need capital markets whichwork well.��
The German government today indicated it wouldn��tintervene.
��The power to make a decision in this case liesexclusively with the European Union,�� Ann-Christin Wiegemann, aspokeswoman for the Economy Ministry, told reporters in Berlintoday, adding she has no information on whether the Germangovernment is in touch with the European Commission on the case.
