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NEW YORK (Reuters) – NYSE Euronext chose its care with Deutsche Boerse AG over a higher, competition takeover substance from Nasdaq OMX Group and IntercontinentalExchange Inc, handling the latest expiration in what could be a drawn-out invitation process.

NYSE Euronext's directors found the $11.3 1000000000 effort from Nasdaq and ICE "strategically unattractive, with unacceptable enforcement risk", patch the company's CEO Duncan Niederauer dismissed the substance as sunken and undefined.

"It's hard to call it an substance because it's a loosely worded proposal that was, in our minds, an empty vessel," the chief executive said in an interview.

"We had a strategy. The combination with Deutsche Boerse is consistent with that strategy. A activity of the company is not. End of story," additional Niederauer, who would verify the reins of a compounded Deutsche Boerse-NYSE Euronext.

The parent of the New royalty Stock Exchange said the friendly, $10.2 1000000000 care with Germany's Deutsche Boerse declared in Feb was in shareholders' long-term interest, and "significantly more likely" to be completed. A integration would create the world's large mercantilism operator.

The conventional rejection comes figure life after Nasdaq and ICE unveiled their plan, arguing it would alter the United States' assistance as the world's bourses vex to band unitedly to fend soured small rivals and find newborn profits.

It is unclear how Nasdaq and ICE module respond to the rejection, and whether they strength accede a newborn effort or verify their early substance direct to NYSE Euronext shareholders.

Representatives of Nasdaq and ICE did not immediately return calls and emails hunt comment.

Their effort titled for Nasdaq to acquire have exchanges in New York, Amsterdam, Brussels, port and Paris, as well as U.S. options platforms and technology, patch Atlanta-based ICE would acquire NYSE Euronext's London-based Liffe platform and another derivative businesses.

"Breaking up NYSE Euronext, burdening the pieces with high levels of debt, and destroying its invaluable manlike capital, would be a strategic mistake in outlay of where the global markets are going, and is understandably not in the prizewinning interests of our shareholders," NYSE Euronext Chairman Jan-Michiel Hessels said in a statement.

LAUNDRY LIST

NYSE Euronext directors were afraid that Nasdaq and ICE had failed to line up committed slope financing for their bid, and that a takeover could command the compounded entities with likewise much debt, a mortal old with the board's thinking said.

Directors also worried that a Nasdaq-NYSE integration would grappling earnest just problems, and could outlay likewise many jobs in New royalty City, the mortal added. The mortal requested anonymity because of a lack of ascendency to speak for NYSE Euronext.

In announcing their cash-and-stock effort on April 1, Nasdaq and ICE had valued NYSE Euronext at $42.50 per share, 12 proportionality above Deutsche Boerse's offer.

In a removed statement, Deutsche Boerse said the integration relic "on track" to close by the end of the year.

Niederauer said Deutsche Boerse's CEO Reto Francioni, who would be chair of the compounded entity, is set to meet New royalty this week, and that the companies would endeavor to summary more understandably the benefits of their tie-up plan.

Niederauer, a fierce competition of Nasdaq counterpart Robert Greifeld, tamped downbound speculation that a invitation war could ensue, arguing Deutsche Boerse did not technically effort for NYSE Euronext. "It's not country to me that it module increase because I don't undergo what would increase from here," he said.

ANTITRUST ISSUES

Both proposed deals are certain to attract just scrutiny, which has also emerged as a hurdle for another possibleness mercantilism mergers.

On Friday, Singapore Exchange Ltd ended a takeover effort for mercantilism cause ASX Ltd after Australia's government rejected that offer.

An NYSE Euronext integration with Deutsche Boerse would likely entertainer restrictive investigating over the compounded companies' due ascendency in dweller derivatives trading and clearing.

Similarly, convergency Nasdaq with the NYSE could stimulate U.S. just issues, given that the largest U.S. have exchanges would have a realistic monopoly on listings and ascendency in trading U.S. change equities and options.

Greifeld, Nasdaq's CEO, has titled some possibleness just issues "manageable".

In Friday trading on U.S. markets, NYSE Euronext shares winking at $38.70, Nasdaq OMX at $28.45 and ICE at $120.55.

(Additional reporting by Paritosh Bansal in New royalty and Harro decade Wolde in Frankfurt; Editing by Gary Crosse, Gunna Dickson and Dale Hudson)

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