Chirac Supports Euronext Boerse Merger

French President Jacques Chirac, left, said he favors a merger between Euronext and Deutsche Boerse, after Paris-based Euronext recommended that its shareholders accept an offer from New York-based NYSE Group.

"I would prefer a Franco-German solution," Chirac said.
The French president's comments come amid growing anxiety among Euronext's large shareholders and users in Paris about the $10bn (£ 5.4bn) take-over, and could encourage Deutsche B'rse, the NYSE's German rival, to counter-bid.

Euronext last week signed an agreement to merge with the New York Stock Exchange, after studying and dismissing a rival plan from Deutsche B'rse.

He said: "The debate about the consolidation of Europe's stock exchanges has a political dimension, because it concerns the integration and efficiency of Europe's financial markets. I know that politicians recognise the importance [of this], and they recognise it on both sides."

Meanwhile Euronext's chief executive, Jean-Frano is Th'odore, continues to work towards including Borsa Italiana in the trans-Atlantic tie-up with the NYSE.

Mr Chirac, speaking at a Franco-German summit in Rheinsberg, said: "I will not hide the fact that I favour the Franco-German solution for reasons of principle, and I would regret it if this solution is not adopted."

NYSE yesterday declined to comment on Mr Chirac's remarks. Its shares were down almost 5 per cent in New York.

The NYSE-Euronext deal is conditional on the AMF, France's market watchdog, signing an agreement with other European regulators and the US Securities and Exchange Commission outlining the rules for regulating the new group. Euronext yesterday indicated it was considering delaying shareholder approval of the deal until the agreement had been signed. Several large European companies are worried they could be forced to adopt the US's Sarbanes-Oxley law.

Euronext has so far rejected Frankfurt's merger proposals, arguing that the B'rse's offer is inferior in value and savings and would demolish its own federal structure in favour of a centralised model. It would also centre too much executive power and trading business in Germany while keeping the B'rse's "vertical silo" of trading, clearance and settlement.