The Vienna bourse and the Warsaw Stock Exchange are currently discussing a possible merger in an attempt to create a hub for equities trading and initial share offerings in Eastern and Central Europe, as far as insider sources are concerned. The discussions are at a very early stage at this point of time and this may not lead to a transaction. As nothing is official as of yet, the insider sources asked not to be named. Incidentally, on today, the Warsaw exchange increased by 0.8% to 38.90 Polish Zloty, thereby making the company valuation of 1.63 billion Zloty.
Incidentally, for years, there has been a rivalry in these two countries for getting influence in the region. After buying the bourses in 2008 in both Prague and Ljubljana and Budapest in 2004, Vienna expanded. Since 2011, both Prague and Vienna had a single initial public offering. Warsaw, on the other hand, was able to attract 41 after luring the companies by offering access to the cash rich pension and mutual funds of Poland.
According to the Analyst of ING Securities SA, Piotr Palenik, if one hub for the entire region is created, it will become a great opportunity for the company to grab interest of the investors more efficiently than how they do it at current point of time. Palenik added that the key point is that where the decision center will be located, if this merger ultimately sees the daylight. As far as market dynamics are concerned, things look in favor of Warsaw and this agreement should be used by the company to be in charge of the unified platform.
As stated by the spokeswoman of Vienna Exchange, the Chief Executive Officer of the parent company of the Vienna bourse, CEE Stock Exchange Group, Michael Buhl will be meeting the new CEO of Warsaw bourse, Adam Maciejewski soon. She added that CEE Stock Exchange Group has interest in cooperation with Warsaw; however, she declined to make any further comment on this matter.
Incidentally, CEE Stock Exchange Group is mostly owned by the Austrian banks and various companies listed in the Vienna bourse. The biggest shareholders of the same are: Erste Group Bank AG, UniCredit SpA and Vienna Insurance Group AG. Incidentally, CEO of Erste, in last January, stated that if the two bourses merge, that will be welcomed by him.