Warren Buffett’s Berkshire Hathaway Inc. (NYSE:BRK.A) (NYSE:BRK.B) apparently made an offer to buy out NYSE Euronext (NYSE:NYX) last November, according to an anonymous source cited by DealBook. However, in December, IntercontinentalExchange Inc (NYSE:ICE) announced that it would buy NYSE Euronext. The billionaire investor has an eye for undervalued companies and has acquired many of them over the years.
DealBook reports, today, that Berkshire Hathaway Inc. (NYSE:BRK.A) (NYSE:BRK.B) made an “indicative proposal” to buy the company, but it didn’t take long for Buffett’s apparent interest in NYSE Euronext (NYSE:NYX) to end. The company was then free to make a deal with IntercontinentalExchange Inc (NYSE:ICE).
NYSE Euronext (NYSE:NYX) investors received a proxy statement today. The company reported that it was asking its investment bankers to negotiate with bidders other than ICE. It makes mention of Company A, which it refers to as a “large industrial and financial holding company.”
DealBook says its sources confirmed that Company A is actually Berkshire Hathaway Inc. (NYSE:BRK.A) (NYSE:BRK.B). The proxy states that Company A’s offer came on Nov. 28 and was less than ICE’s offer. There were also other requirements for the deal, like NYSE Euronext having to sell its European derivatives business.
NYSE Euronext’s board of directors began looking for possibilities, like selling the derivatives business. They hoped that it would have brought around $5 billion, and if the price was high enough, then it would have sweetened the deal for Berkshire Hathaway Inc. (NYSE:BRK.A) (NYSE:BRK.B).
However, Company A didn’t update its offer by Dec. 13, and at less than $30 per share it was still less than ICE’s offer of around $33.12 per share.