IntercontinentalExchange (ICE) to Acquire NYSE Euronext for $33.12 per share in Stock and Cash. What does Model Price say?

Breaking news this morning has ICE acquiring NYSE (NYX) for $33.12 per share in stock and cash.

As of last night’s close I have reproduced NYX’s model price chart.

NYSE Euronext with weekly price bars, EBV Lines (colored lines) and model price (dashed line)

NYSE Euronext with weekly price bars, EBV Lines (colored lines) and model price (dashed line)

As one can see we have a calculated a model price of $34.83.  In my estimation NYSE could have squeezed a little more juice on behalf of its shareholders from ICE, so we will see what happens.

We also have IntercontinentalExchange (ICE) model price chart in our database.  Here is last night’s chart of ICE.

 Intercontinental Exchge with weekly price bars, EBV Lines (colored lines) and model price (dashed line)

Intercontinental Exchge with weekly price bars, EBV Lines (colored lines) and model price (dashed line)

 

If I were the management of ICE I would be paying for NYSE in stock as well.   According to model price ICE’s stock is trading at a 40% premium.  If this deal gets consummated I would certainly recommend taking the cash, if possible, instead of stock.

Wondering out load whether this deal gets done?  Prices seem out of whack!  The only conclusion I can draw is that management of NYSE must be motivated to do a deal with somebody and ICE seems willing.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s