Nasdaq OMX Group Inc. may be able to add about $1.3 billion in cash to its bid for NYSE Euronext, according to borrowing levels for its previous acquisitions.
Nasdaq OMX could increase the $42.88 a share offer it made with IntercontinentalExchange Inc. by about $5.10 before its ratio of debt to earnings before interest, taxes, depreciation and amortization matched the weighted average level of previous takeovers, according to data compiled by Bloomberg, Sandler O’Neill & Partners LP and the New York-based company. Lenders have already pledged $2.1 billion.
Borrowing the additional amount would put the company’s investment-grade credit rating in jeopardy, a risk it may be willing to bear to beat Deutsche Boerse AG of Frankfurt in bidding for the New York Stock Exchange owner, Macquarie Group Ltd. said. NYSE Euronext is weighing its own incentives for shareholders after rejecting Nasdaq OMX and ICE’s offer even though it’s valued 16 percent higher than Deutsche Boerse’s.
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