Case | HBS Case Collection | January 2006 (Revised February 2006)

Deutsche Borse and the European Markets

by Dwight B. Crane and Monika Stachowiak

Abstract

In December 2004, Deutsche Borse proposed an offer for the London Stock Exchange. Some shareholders opposed the acquisition, leading to the offer's withdrawal and replacement of management, including the CEO and board members. Written from the viewpoint of Deutsche Borse and addresses a number of issues: Was the attempted acquisition of the London Stock Exchange a reasonable strategy? Was the announced offer price reasonable? Why were dissident shareholders so opposed to the transaction? What allowed them to prevail? What could management or the supervisory board have done differently that might have led to a different outcome?

Keywords: Mergers and Acquisitions; Strategy; Governing and Advisory Boards; Capital Structure; Stocks; Valuation; Corporate Governance; Price; Change Management; Commercialization; Financial Services Industry; Europe;

Citation:

Crane, Dwight B., and Monika Stachowiak. "Deutsche Borse and the European Markets." Harvard Business School Case 206-082, January 2006. (Revised February 2006.)