At least two investors in shares of NYSE Euronext (NYSE:NYX) filed two separate lawsuits in State Courts against the proposed merger between the NYSE Euronext and the Deutsche Boerse seeking to block its planned $10 billion acquisition.
According to the lawsuits the plaintiffs allege the proposed stock exchanges merger are unfair to NYX shareholders sinceNYSE EuroNext is selling itself too cheaply to Deutsche Borse.
On February 15, 2011 NYSE Euronext (NYSE:NYX) and Deutsche Boerse AG (XETRA:DB1) announced that they have entered into a business combination agreement. Under the terms of the proposed agreement on the NYSE Euronext side each NYSE Euronext share will be converted into 0.4700 of a share of a newly created Dutch holding company. Following full completion of the contemplated transactions, the former Deutsche Boerse shareholders would own 60% of the combined group and the former NYSE Euronext shareholders would own 40% of the combined group on a fully diluted basis and assuming that all Deutsche Boerse shares are tendered in the exchange offer. The approximate value of the consideration was $38.12 per share of NYSE Euronext as of the date of the merger announcement.
NYSE Euronext performed well for its shareholders in the past. NYSE Euronext’s 12 months Total Revenue increased from 2007 to 2010 from $3.938billion to $4.425billion. Even though its Net Income decreased from 2007 to 2010 from $643million to $577million, it had to report a Net Loss of $745million in 2008 and was able to increase its Net Income the following year to $219million in 2009. Therefore even though while its Net Income decreased from 2007 to 2010, its Net Income substantially increased from a substantial Net Loss in 2008 to a substantial Net Income in 2010.

Shares of NYSE Euronext rose from as high as $108.26 in 2006, but then fell to as low as $15.17 in March 09. Since then NYX shares increased to over $30 in February 2011. However, at least one analyst set a price target for NYSE Euronext stock at $46 per share.