Another AMEX letter… oh the tears…
Ralph DellaCamera sends an open letter opposing the NYX merger/buyout. He states…
“There are a number of aspects of this deal that are deeply troubling, including the fact that the offer ascribes no value to AMEX’s 20% stake in the OCC, that the merger consideration paid to Members is uncertain in terms of value and timing and that American Stock Exchange CEO Neil Wolkoff will receive a windfall payment of millions of dollars for this flawed transaction.”
First of all, NYX is basically paying for the OCC stake. AMEX has no value as a stand alone entity outside of this stake for NYX. Merged with NYX, synergies can be accomplished due to the ETF biz, hence NYX is the best suited buyer. BUT MAKE NO MISTAKE, AMEX as a stand-alone is not worth much.
As far as what the CEO will get paid from the deal, I have not seen any hard numbers, nor has Ralph provided any.
The only value at AMEX is the real-estate, which is being paid for separately, and the OCC.
AMEX holders will also be getting cheap NYX shares… as the synergies are realized from this deal, they will be rewarded very well.
So my open letter to AMEX holders… stop trying to be greedy, AMEX simply does not have the assets to demand such a thing, and stop crying.
