GO
Loading...

Enter multiple symbols separated by commas

NJ Pension Fund Sues NYSE-Euronext on ICE Deal

NYSE New York Stock Exchange
Paul Giamou | Aurora | Getty Images

A pension fund that holds shares in NYSE-Euronext has sued the exchange operator over its proposed $8.2 billion sale to IntercontinentalExchange, saying the deal undervalues the company's stock.

The New Jersey Carpenters Pension Fund on Friday filed a complaint in New York State Supreme Court in Manhattan contending that NYSE-Euronext breached its duty to maximize returns for shareholders. The lawsuit seeks class-action status on behalf of other NYSE-Euronext shareholders and aims to block the sale.

It is the second such lawsuit filed against the exchange operator since the deal was announced on Thursday. An individual shareholder, Samuel Cohen, filed a proposed class action in Delaware Chancery Court on Friday that also seeks to prevent the buyout from going forward.

Under the deal, NYSE-Euronext, which operates the New York Stock Exchange, will sell itself to Atlanta-based ICE. The stock-and-cash deal is expected to close in the second half of 2013.

At $33.12 per share, the deal represents a 28 percent premium over NYSE-Euronext's closing price last Wednesday.

In court papers, the New Jersey pension fund said the deal was based on a "hopelessly flawed process" that would favor NYSE-Euronext Chief Executive Duncan Niederauer and several members of its board of directors.

The sale was "designed to ensure the sale of NYSE-Euronext to ICE on terms preferential to ICE and designed to benefit NYSE Euronext's insiders," the pension fund said.

A spokesman for NYSE-Euronext declined to comment. A spokeswoman for ICE, which is also named as a defendant in the lawsuit, did not return a call seeking comment.

The lawsuit also names as defendants Niederauer, NYSE-Euronext Chairman Jan-Michiel Hessels, and other executives and board members.

The cases are New Jersey Carpenters Pension Fund et al. v. NYSE Euronext et al., Supreme Court of the State of New York, No. 654496/2012, and Cohen v. NYSE Euronext et al, Delaware Court of Chancery, No. 8136.


Contact U.S. News

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    Please choose a subscription

    Please enter a valid email address
    To learn more about how we use your information,
    please read our Privacy Policy.

Don't Miss

  • Learning your value

    How to make sure you get what you¿re worth at your job, why you should stop apologizing, and how to manage work-life balance. Anchor Mika Brzeznski, author of the new book "Grow Your Value," shares her strategies for juggling busy lives.

  • Why women cheat?

    Is cheating bad? Why do women cheat? The founder and CEO of affair website Ashley Madison tells all, including why he has his eye on China.

  • Judge's gavel

    The Financial Industry Regulatory Authority disciplined several financial services firms and individuals in May 2015.

U.S. Video

  • Cramer: Here's a sign the market could rally

    Wall Street's been soaking in red, but "Mad Money" host Jim Cramer has one signal to watch for that could point to another run.

  • Burger war maneuvers

    Cramer looks at the number of company's selling burgers and tries to determine the quality names, as well as those to avoid.

  • Cramer: What's driving defense?

    Cramer says that even though President Obama has made it clear the US can no longer be the world's policeman, the country can become the world's arms dealer. Profiting from defense spending.