In re NYSE/Archipelago Merger
Academic affiliate Burton Malkiel and Analysis Group were retained by Wachtell, Lipton, Rosen & Katz on behalf of the New York Stock Exchange, Inc. (NYSE) in litigation brought on behalf of a small number of NYSE members seeking an injunction to delay the vote on whether to approve the merger between NYSE and Archipelago Holdings, Inc.
Analysis Group supported Professor Malkiel in his review of the fairness of the merger. This research included analyses of NYSE seat prices, Archipelago stock prices, historical merger premiums, fairness opinions, valuations of publicly traded exchanges, and analyst reports. Professor Malkiel testified in deposition and submitted an affidavit on the benefits that the merger provided to the NYSE and its members. He also testified that based on his own analysis, the merger was more than fair for NYSE seatholders. During the preliminary injunction hearing, the parties reached a settlement that allowed the vote on the merger to proceed as scheduled. Under the settlement, an independent party was retained to evaluate the terms of the merger. Subsequently, this party found the terms of the merger to be fair, and the members of the NYSE voted to approve the merger by an overwhelming margin.
The Analysis Group team included Managing Principals Nicholas Crew and Lee Heavner and Principal Kevin Gold.