NYSE Euronext Sued By Pension Fund

NYSE Euronext Sued By Pension Fund

The NYSE Euronext was sued recently by a pension fund due to its planned sale to the IntercontinentalExchange Inc.

The New Jersey Carpenters Pension Fund, which holds shares in the NYSE Euronext, indicated that the stocks of the company were undervalued by the deal. The complaint was filed by the pension fund at the Supreme Court of the New York State and intends to stop the sale. Another lawsuit was also fled earlier by Samuel Cohen at the Delaware Chancery Court that also sought to stop the sale.

The deal calls for the sale of the NYSE Euronext to ICE of Atlanta and is set to be finalized by the second half of next year. Each share will have a price of $33.12.

The court papers filed by the pension fund revealed that the basis for the deal was a flawed process that will be favorable to Duncan Niederauer, the chief executive of NYE Euronext, and some directors of the board. The sale was also made to guarantee that the NYSE Euronext will be sold to ICE and insiders will benefit from it.

A NYSE Euronext spokesman did not release any statements while the ICE spokeswoman did not return a call asking for the statement of the company.

A number of board members and executives of NYSE Euronext were also named as defendants in the lawsuit along with Niederauer and Jan-Michiel Hessels, the chairman of NYSE Euronext.

Posted by James Fried on Tuesday December 25 2012, 5:50 AM EST. Ref: Fox News. All trademarks acknowledged. Filed under Finance. Comments and Trackbacks closed. Follow responses: RSS 2.0