13 October 2006

Deutsche Börse notifies European Commission of proposed Euronext combination

Deutsche Börse welcomes the broad support for the creation of a truly European exchange organization expressed by key constituencies including shareholders, customers, the governments of several European countries, and industry bodies. In its proposal published June 19, Deutsche Börse outlined the model for a European exchange organization maximizing benefits for all stakeholders and significantly contributing to the integration of European capital markets. The federal model and a balanced structure outlined by Deutsche Börse provide for a superior alternative to transatlantic combination while increasing the significance of all financial centers involved.

Since Deutsche Börse first announced its proposal for a combination with Euronext it has been working closely with the European Commission for merger control purposes. On Friday, October 13 Deutsche Börse formally notified the European Commission for merger review. Deutsche Börse will continue to work closely with the authorities for a timely completion of the review process.

Momentum for a European solution has further increased with Borsa Italiana’s and Deutsche Börse’s decision to sign a letter of intent aimed at creating a federal European exchange that includes Euronext. Deutsche Börse has over the past weeks engaged in a constructive dialogue with Borsa Italiana over a concept to create a European exchange group using a federal model. This constructive dialogue will continue. Deutsche Börse’s proposal for a combination with Euronext would only represent the first step in achieving this tri-party combination.

Deutsche Börse does not consider attractive the idea of contributing its cash equity trading activities to a combined NYSE/Euronext entity. The company underscores that its current proposal already foresees a model for the combination of European cash markets led out of Paris. Deutsche Börse values the contribution of the working group led by Henri Lachmann recommending a pan-European stock exchange integration. Deutsche Börse agrees with the major conclusion of the Lachmann group that the proposed transatlantic acquisition is not in the best interests of the European market place and would amongst others raise significant regulatory problems.

Deutsche Börse invites all parties interested in creating a European capital market and achieving maximum benefits for all stakeholders to continue to work towards this goal.

© Deutsche Börse