Last Thursday, the European Union (EU) blocked the merger of the exchange operators Deustche Börse and NYSE Euronext.
What’s next after the mega merger flop? A member of Germany’s leading stock market, Deustche Börse is calling for chief executive Reto Francioni to step down.
Reuters reports that Francioni’s term ends after December 2013 and contract terms in Germany are usually renewed one year in advance.
‘Can someone who wanted to change the status quo by finding a partner only to see that (deal) collapse still lead this company into the future?’ Johannes Witt, a board member representing the interests of labor, asked German weekly Euro am Sonntag.
But Francioni told the Financial Times in Germany that he does not intend to call it quits, or surrender his bonus for 2011, anytime soon. Instead, he criticized the European Commission's decision to block the merger and said that Deustche Börse would consider taking Brussels to court.
Last Thursday, the European Union (EU) blocked the merger of the exchange operators Deustche Börse and NYSE Euronext.
The European Commission, the EU’s executive body, said it was ruling against the merger because the combined entity would make the marketplace tougher for new and emerging competition. The $7.4 billion marriage would have created the world’s largest financial exchange.
In order to make the merger acceptable, the commission requires that the companies either sell Deutsche Börse’s Eurex derivatives exchange or NYSE Euronext’s LIFFE, but both exchanges turned down this offer.
