NYSE Euronext and Borsa Italiana today announced the signing of an agreement for the sale of NYSE Euronext’s stake in a joint venture, clearing the way for the Italian exchange’s merger with the London Stock Exchange.

The exchanges have signed a deal regarding MBE Holding, their joint venture that owns 60.37% of Società per il Mercato dei Titoli di Stato S.p.A. (MTS), and MTSNext. MTS is a regulated European electronic exchange for government bonds and other types of fixed income securities. MTSNext is a joint venture between MTS and Euronext NV responsible for the management and promotion of the EuroMTS Indices.

Under the terms of the agreement, NYSE Euronext’s 51% stake in MBE Holding and 33% stake in MTSNext are valued at €100 million.

The agreement follows the exercise of Borsa Italiana’s call option right to purchase all the shares held by Euronext in MBE Holding and MTSNext. The call option right was triggered due to the change of control of Euronext resulting from its combination with NYSE Group, Inc.

With this acquisition, Borsa Italiana aims to increase its presence in wholesale bond trading and to enhance the value of MTS’ business.

The closing of the transaction is expected by mid-September 2007.

http://www.borsaitaliana.it/chisiamo/ufficiostampa/comunicatistampa/2007/070803mts.en.htm
http://www.nyse.com/press/1186049853351.html