Deutsche Börse, NYSE throw sweetener on merger deal

The two exchanges offer a special dividend of €620 mn as they gear up for their respective shareholder meetings

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In a move to cement approval of their proposed merger before a special shareholder meeting next week, Deutsche Börse and NYSE Euronext have proposed paying a special dividend to their respective shareholders.

The intended distribution translates into a payment of €2 ($3) for every Deutsche Börse share and €0.94 for each NYSE Euronext share. The total size of the dividend is expected to be approximately €620 mn.

Both exchanges have scheduled shareholder meetings on June 16th to consider the merger agreement.

‘The superior cash flow generation of the combined group allows us to maintain a strong balance sheet, with the ability to pay robust dividends, repurchase shares and invest in new growth opportunities in the future,’ comments Duncan Niederauer, CEO of NYSE Euronext, in a statement.

A competing bid for NYSE Euronext from NASDAQ OMX and IntercontinentalExchange was dropped last month.

Deutsche Börse has also announced it will buy the remaining 50 percent of derivatives exchange Eurex from SIX Group, its Swiss partner, for €295 mn in cash and €295 mn in post-merger stock of the newly combined company.