By Patrick Jenkins in Davos and Jeremy Grant in London
Duncan Niederauer, chief executive of NYSE Euronext, has admitted that he ?misjudged? European antitrust authorities? approach to his exchange?s attempted tie-up with Deutsche B?rse, saying there was only a ?glimmer of hope? the deal would succeed.
His comments were the first sign that the German and US groups have all but given up hope that European politicians will approve the deal, after Brussels competition staff blocked it earlier this month.
That decision – backed by Joaqu?n Almunia, EU competition commissioner – was based on a view that the combination would create a dominant player in derivatives markets in Europe, stifling competition.
Of the 26 EU commissioners who must make a final decision on the proposed deal by February 1, only about six are understood to sympathise with the exchange groups? arguments that trading both on and off exchange is a global market, so a European concentration in some on-exchange areas is the wrong basis for a decision. ?I misjudged the process,?
Mr Niederauer said, referring to the antitrust authorities? analysis of the markets in which the two exchange?s derivatives platforms operate. Asked in a Financial Times video interview if he had given up on the deal, he said: ?You don?t give up until the end. It certainly looks like a low probability of success. But it?s not hopeless.?
Deutsche B?rse shares rose 3.8 per cent to 45.30 euros in Frankfurt, while NYSE Euronext shares were up 0.7 per cent at $27.66 in afternoon trading in New York.
NYSE and Deutsche B?rse say that their derivatives exchanges – Life and Eurex – already compete with CME Group in the US.
? The Financial Times Limited 2012