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Last Updated: Friday, 19 May 2006, 15:07 GMT 16:07 UK
Deutsche Boerse lays out bid plan
Deutsche Boerse
Talks between Deutsche Boerse and Euronext are ongoing
Deutsche Boerse has reaffirmed its aim to merge with pan-European exchange Euronext, outlining its latest plans for how a combined firm would work.

The German company wants the headquarters of the merged business to remain in its Frankfurt hometown.

It also wishes for its chief executive to head the company, with Euronext's boss holding a "supervisory role".

Euronext has yet to comment on the proposals, but earlier said it wanted the best deal for its shareholders.

Revived talks

Euronext, which is based in Amsterdam, Brussels, Paris and Lisbon, recently requested that its shareholders vote against a proposal to merge with Deutsche Boerse, due to insufficient details from the German group.

Yet leading Euronext shareholders have since threatened to remove its management unless a deal with Deutsche Boerse was arranged quickly.

Deutsche Boerse has held merger talks with Euronext since the start of this year, but they have so far failed to reach agreement.

The German firm's latest suggestion is for the new company to be headquarted in Frankfurt, but with cash equity trading and listings activities led from Paris.

It is further prepared for the new business to officially be domiciled in the Netherlands.

However, it is insisting that the chairman of the firm's all important supervisory board should be nominated by Deutsche Boerse - and have the casting vote.

Last year Deutsche Boerse and Euronext put forward rival bids for the London Stock Exchange, but both fell through.

New York's Nasdaq has since built up a 25.1% stake in the London market.

A merger between Deutsche Boerse and Euronext has increasing appeal as traders, investors and issuers are all keen to lower transaction costs - especially in clearing and settlement.

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