WHEN: TODAY, WEDNESDAY, FEBRUARY 9TH at 12PM ET
WHERE: CNBC'S "THE STRATEGY SESSION"
Following is the unofficial transcript of breaking news from CNBC's David Faber. All references must be sourced to CNBC.
DAVID FABER: ALRIGHT SCOTT IM GOING TO TAKE IT HERE. WERE OVER AT THE STRATEGY SESSION DESK. IM DAVID FABER ALONG WITH MY COHOST AS ALWAYS GARY KAMINSKY. OF COURSE WE WILL CONTINUE TO TAKE THE Q&A OF THE HOUSE BUDGET COMMITTEE GRILLING FED CHAIRMAN BERNANKE BUT I DO WANT TO BRING YOU UP TO DATE ON THE DEAL SCOTT WAS JUST TALKING ABOUT. I HAVE A FEW MORE DETAILS I CAN SHARE AFTER SPEAKING WITH PEOPLE CLOSE TO THE SITUATION. THAT IS AGAIN THE NYSE AND DEUTSCHE BOERSE IN ADVANCE TALKS ABOUT A MERGER UNDER WHICH NYSE SHAREHOLDERS WOULD OWN ABOUT 40% OF THE COMBINED COMPANY THE REMAINDER OF COURSE OWNED BY DEUTSCHE BOERSE HOLDERS. WE ARE TALKING AS YOU WOULD IMAGINE THEN ABOUT AN ALL STOCK TRANSACTION CLEARLY. NOW SHARES OF THE NYSE SCOTT TOLD YOU UP ABOUT 18%. I CAN QUICKLY TELL YOU AT THIS POINT THAT THE IMPLIED PREMIUM OF A DEAL WHILE THERE IS A BIT OF A PREMIUM IM TOLD IN THE ULTIMATE STOCK RATIO THAT WILL BE USED HERE AND AGAIN THE DEAL IS NOT YET DONE IMPLIES A PREMIUM OF CLOSE TO ABOUT 10% MAYBE EVEN A BIT LESS THAN THAT. WHEN YOU JUST LOOK AT THE ECONOMIC MERITS RIGHT NOW IT SHOULD BE ABOUT A 38% OWNERSHIP BY THE NYSE 62% BY DEUTSCHE BOERSE. I AM TOLD HOWEVER THAT THE NYSE WILL BE ACREDED A BIT MORE VALUESO THERE WILL BE A PREMIUM NONETHELESS THAT PREMIUM AGAIN FROM PEOPLE WHO HAVE BEEN WORKING ON THIS DEAL NOT ANYWHERE NEAR IM TOLD 18%. THAT STOCK IS COMING IN A BIT. NOW OF COURSE YOU DO HAVE TO GARY INCLUDE COST SAVINGS AND THERE WILL BE SIGNIFICANT ONES THE WAY THAT THIS IS BEING PRESENTED OF COURSE HAS BECOME A RELAVANT OPERATOR GLOBALLY ABLE TO COMPETE AGAINST SO MANY OF THESE EMERGING EXCHANGES IN THE WORLD IN A VERY DIFFICULT ENVIRONMENT IN WHICH OF COURSE YOU KNOW BETTER THAN MANY VOLUME HAS CONTINUED TO BE VERY LOW AND SO YOU CAN FIGURE OUT HOWEVER YOU WANT IN TERMS OF THE COST SYNERGIES THERE TALKING ABOUT WITH 300 MILLION EUROS OR SO THAT THEY SEE AND WHAT THAT WILL ULTIMATELY MEAN FOR THE COMBINED COMPANY.
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