NEW YORK - Billionaire Kenneth Langone is preparing a bid for the New York Stock Exchange, Bloomberg News reported yesterday citing people familiar with the plan.
The report concerning the world's biggest stock market is the latest development in a wave of consolidation sweeping US securities markets.
Last week NYSE
moved to acquire Archipelago Holdings, while Nasdaq agreed to buy Instinet Group.
If successful, Langone, the 69-year-old founder of American DIY giant Home Depot, could gain control of an institution that ousted his friend, former NYSE chairman and chief executive officer Richard Grasso, in 2003.
Langone regards the NYSE's bid for Chicago-based Archipelago as unfavourable for the Big Board's 1366 seat holders, said Jim McCarthy, a spokesman for Langone. He wasn't more specific and Langone declined to comment.
NYSE spokesman Ray Pellecchia and Archipelago spokeswoman Margaret Nagle declined to comment.
But Bloomberg's sources said: "Langone is seeking funds from securities firms to back his takeover attempt."
A successful bid would upset the plan by the NYSE's chief executive, John Thain, to merge the Big Board with Archipelago's electronic-trading technology, and gain a foothold in the derivatives market and the trading of shares listed on the Nasdaq Stock Market.
Langone, who headed the NYSE's compensation committee from 1999 to 2003, is a co-defendant in New York State Attorney General Eliot Spitzer's suit to recover most of Grasso's $140 million retirement package.
Langone derives much of his wealth from a $600 million stake in Atlanta-based Home Depot and Forbes magazine ranks him 260th among the 400 wealthiest Americans, with an estimated fortune of $1.1 billion.
Under last week's merger agreement with Chicago-based Archipelago, NYSE members would swap their seats for 70 per cent of the combined company.
Archipelago shareholders would get the rest.
- BLOOMBERG and STAFF REPORTER
