Deutsche Boerse Dismisses Reports On Merger Talks With NYSE Euronext

December 7, 2008 1:21 p.m. EST

Berlin, Germany (AHN) - Deutsche Boerse AG on Sunday has dismissed the information that it is in talks with NYSE Euronext on a merger, which was considered to result into the world's leading stock exchange, the exchange said in a statement.

On Dec. 6, Der Spiegel magazine reported, without citing anyone for the information, that the exchanges are planning to create a Dutch-based holding company after the merger.

The German's weekly newspaper reported that the resulting company would be led by Deutsche Boerse Chief Executive Officer Reto Francioni along with eight board members as well as an 18- member directorate.

Der Spiegel also reported saying in its advance edition that the Netherlands-based holding company would take over Deutsche Boerse's entire stake and merged with a U.S.-based subsidiary of the company.

The holding company would operate trading in New York with units in Paris and Frankfurt, while derivatives would have remained in Frankfurt, the magazine reported.

the Frankfurt, Germany-based owner of the German stock exchange is facing with the worst annual drop in its stock value since it went public seven years ago as the euro-zone's largest economy entered recession last month.

New York-based NYSE Euronext, which operates ona single platform, is considered to have a market value of $5.7 billion. The shares of the company has declined by as much as 76 percent so far this year.

Deutsche Boerse, which operates the Frankfurt Stock Exchange and is co-owner of Europe's largest futures market, has a market value of 9.8 billion euros ($12.5 billion). The stock of the firm has tumbled by as muc has 63 percent so far this year.