Europe South Asia Asia Pacific Americas Middle East Africa BBC Homepage World Service Education
BBC Homepagelow graphics version | feedback | help
BBC News Online
 You are in: Business
Front Page 
World 
UK 
UK Politics 
Business 
Market Data 
Economy 
Companies 
Your Money 
Business Basics 
Sci/Tech 
Health 
Education 
Sport 
Entertainment 
Talking Point 
In Depth 
AudioVideo 
Monday, 6 December, 1999, 15:53 GMT
German exchange to demutualise
boerse The emphasis will be on international shareholding


The German stock exchange, Deutsche Boerse, says it plans to convert to a public company and become a pan-European exchange.

Boerse chiefs have revealed plans to demutualise and take a new name, Euroboard. The exchange is currently owned by market participants.

They are planning a private placement of shares, a capital increase or a public offering of shares and could list itself on the exchange.

Boerse executives set no timescale, but sources said it would be difficult for the changes to take place in the next year.

While a spokesman said the boerse intended to continue to co-operate with other exchanges around Europe seeking an alliance, Deutsche Boerse did not notify any of those exchanges about its plans.

A statement said: "Deutsche Boerse sees the orientation of the exchange towards Europe as a logical consequence of the growing together of the European capital markets."

Single European cash market

From the name change and emphasis on international shareholding, it seems Deutsche Boerse intends to play a leading role in any pan-regional co-operation.

But Deutsche Boerse said it hoped to "quickly establish a single European cash market together with the exchanges of the European Exchange Alliance.

One of those partners, the London Stock Exchange, plans to demutualise in July 2000 and did not express any immediate alarm at the German exchange's move.

A spokesman said: "We are pleased others agree that the for-profit model is the way forward for exchanges."

Electronic threat

The move comes at a time when exchanges are facing the growing threat of electronic rivals.

Worry has intensified since the decision by Nasdaq, the successful US electronic exchange, to launch a European stock exchange, based in London.

Search BBC News Online

Advanced search options
Launch console
BBC RADIO NEWS
BBC ONE TV NEWS
WORLD NEWS SUMMARY
PROGRAMMES GUIDE

See also:
09 Mar 99 |  The Company File
London and Frankfurt to synchronise trading

Internet links:

The BBC is not responsible for the content of external internet sites
Links to other Business stories are at the foot of the page.


E-mail this story to a friend

Links to more Business stories