3 European bourses in mega merger deal

LONDON, MARCH 20. Stock exchanges in Paris, Amsterdam and Brussels announced on Monday that they would merge to form Euronext, the largest single stock exchange in continental Europe.

``It is not a link. It is not an alliance. It is a merger, a full merger,'' Mr. Jean-Francois Theodore, head of the Paris exchange and the chairman and chief executive of Euronext, told a news conference in London. Euronext hopes to complete its merger by September or October, he said.

The combined exchanges will continue to operate trading floors in France, the Netherlands and Belgium, and each will be listing the stocks of its partners. Market capitalisation of the listed companies will be $2.3 trillion, vaulting Euronext ahead of Frankfurt as the continent's biggest stock exchange.

Mr. Olivier Lefebvre, head of the Brussels exchanges, will become general secretary of Euronext, and Mr. George Moller, president of the Amsterdam Exchange, will become chief operating officer.

Mr. Theodore said Euronext was seeking other partners, including in London and the U.S., but the next to join likely will be the Luxembourg Stock Exchange.

``It is an open alliance, open to any European-based bourses, especially London-based institutions,'' Mr. Theodore said.

The Luxembourg stock exchange will join Euronext once the three- way alliance is complete, Mr. Theodore said.

- New York Times

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