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article imageNew Jersey pension fund sues NYSE Euronext

By Owen Weldon     Dec 25, 2012 in Business
A New Jersey pension fund that holds shares in NYSE Euronext is suing the exchange operator over its proposed $8.2 billion sale to IntercontinentalExchange Inc. (ICE).
According to Fox, the New Jersey Carpenters Pension Fund said that deal undervalues the company's stock.
The lawsuit was filed on Friday in New York State Supreme Court in New York City. The lawsuit contends that NYSE Euronext breached its duty to maximize returns for shareholders. The lawsuit aims to block the sale of the exchange operator and it also seeks class-action status on behalf of other shareholders.
According to Reuters, this is the second lawsuit against the exchange operator since Thursday, when the deal was announced. On Friday Samuel Cohen, an individual shareholder, filed a proposed class action lawsuit in Delaware Chancery Court. That lawsuit also seeks to prevent the deal from going through.
According to EmpoweredNews, the pension fund filed the lawsuit on the basis that the deal was a flawed process that is going to work in the favor of the chief executive of NYSE Euronext, which is Duncan Niederauer. The lawsuit also claims that some of the directors of the board, as well as insiders will also benefit from the deal.
A spokesman for the NYSE Euronext did not release any statements about the lawsuit, and an ICE spokeswoman did not have anything to say on the matter.
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