U.S. Sen. Charles Schumer (D-N.Y.) said he will reserve final judgment on NYSE Euronext's planned tie-up with Deutsche Börse AG until an announcement on the deal is made.
Sen. Schumer, who met with NYSE Euronext CEO Duncan Niederauer Friday, is also scheduled to say at a press conference this morning that the name of the new entity could be a sticking point. Sen. Schumer's opinion is closely watched because he is the senior senator from New York.
"Keeping the NYSE first in the name is the right thing to do," Sen. Schumer is expected to say, according to prepared remarks reviewed by The Wall Street Journal. If Deutsche Börse sought to put its own name, initials, or anything besides "New York" first, "it could be an indication that they are trying to wield an upper hand in the new company and would seek to make other business decisions that could go against New York."
The name of the company is still being negotiated, though the ownership split is expected to be 60% for Deutsche Börse shareholders and 40% for NYSE Euronext shareholders. The board is expected to be split equally between the two companies. Boards are expected to vote on the deal Tuesday.
Sen. Schumer also noted he liked the fact that Mr. Niederauer would remain CEO, and that the NYSE would get a big boost in the derivatives business. He added, however, that the name issue "should be resolved sooner rather than later."
An NYSE spokesman said, "We respect the senator and his engagement on this issue. He's an important stakeholder in this company and the state and the city. We hope at the end of the day, he'll be satisfied."
Write to Aaron Lucchetti at aaron.lucchetti@wsj.com
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