The merger between the New York Stock Exchange and Archipelago Holdings (NYSE:AX) is back on track now that the Big Board has brokered a settlement with its dissident shareholders. No, the deal was probably never really in trouble, but the squeaky wheels were starting to get irritating.
Since the announcement of the proposed pairing back in April, the reaction has been generally positive from both camps. Merging the old-school trading institution with the new-economy ArcaEx electronic exchange made too much sense. Over the past few months, the market's approval of the deal has manifested itself through actions as much as words. Archipelago's stock continues to inch higher, and so has the average selling price for one of the 1,365 seats on the NYSE.
That's why the few NYSE members who were objecting to the deal would likely have been drowned out by market logic at the Dec. 6 vote to approve the corporate combination. The terms of the settlement stipulate that an independent financial advisor will be brought in to lend fresh eyes to the deal to make sure that everything is cool before next month's vote.
Archipelago's run has been sweet to Motley Fool Rule Breakers newsletter service subscribers. David Gardner recommended the stock in the February issue, when it was trading at just $20.42 a share. The stock is trading 138% higher today.
The merger should be fruitful for both companies. ArcaEx doesn't dabble too much in NYSE-listed stocks but accounts for roughly a quarter of the market trading on the American Stock Exchange and Nasdaq (NASDAQ:NDAQ).
The combination of the NYSE and Archipelago to form a company that will be called NYSE Group has jump-started the publicly traded exchanges. Shares of Chicago Merc (NYSE:CME) and Nasdaq have both more than doubled since April's merger announcement. Last month, CBOT Holdings (NYSE:BOT) went public and soared for three straight days.
Sure, traders have had to endure the Refco disaster, but every rose has to have its thorns. Oh, and speaking of flowers, I guess it's time to start picking out the bridal bouquet for Archipelago's nuptials.
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Longtime Fool contributor Rick Munarriz thinks that bids and asks are romantic in the appropriate context. He does not own shares of any of the companies in this story. The Fool has a disclosure policy. He is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early.
