Last Updated: Tuesday, 23 May 2006, 06:57 GMT 07:57 UK found on bbc.co.uk source Deutsche Boerse bids for Euronext Euronext headquarters Euronext shareholders are facing a crunch decision German stock market operator Deutsche Boerse has unveiled a merger bid for Euronext, valuing the pan-European exchange at $11bn (8.6bn euros). The move comes 24 hours after a rival $10.3bn offer for Euronext from the New York Stock Exchange (NYSE). Deutsche Boerse, which runs the Frankfurt stock market, described its offer as a “merger of equals”. Euronext shareholders are gathering in Amsterdam for a meeting which could decide the future of the company. The firms annual general meeting will be dominated by the two offers. The German operator said its merger bid would bring about savings worth $380bn, although the combined company would be headquartered in Frankfurt – a move that has previously drawn opposition from Euronext. Euronext indicated on Monday that it was attracted to the NYSE offer. Transatlantic giant This is consistent with our strategic objectives of both expanding geographically into Europe and expanding our product mix into derivatives John Thain, NYSE chief executive Euronext – which operates the Paris, Amsterdam, Brussels and Lisbon markets as well as the London-based Liffe international derivatives exchange – has been in prolonged talks with Deutsche Boerse over the possibility of a full merger. But analysts believe Mondays offer from the NYSE, which would create transatlantic stock market giant worth $21bn, will find more favour with Euronexts board and shareholders. Competition between exchanges has been increasing, and a wave of mergers are predicted as companies look to cut costs and boost client numbers. A rejection of Deutsche Boerse in favour of the NYSE would be a second blow for the German operator, following its unsuccessful attempt last year to take over the London Stock Exchange (LSE). It would also mark the second time Euronext has spurned its German rivals approaches. The first time, in 2005, foundered on Deutsche Boerses insistence on keeping the merged firms HQ in Frankfurt and taking the leading executive role for its own chief executive. The London market has itself been the target of bid interest from Euronext until recently. But moves by the US Nasdaq exchange – which now has a 25% stake in the LSE – all but blocked Euronexts plans to expand to London. Attractive combination Under the terms of proposed NYSE deal, each share in the US operator would be converted into one share of common stock in the merged company, which would be renamed NYSE Euronext. “This is consistent with our strategic objectives of both expanding geographically into Europe and expanding our product mix into derivatives,” said NYSE chief executive John Thain Euronext said on Monday that it considered “the transaction with the NYSE currently offers the most attractive combination”.