A Sidenote On Exchange Merger Mania
Nasdaq ($NDAQ) and ICE($ICE) made a play for the NYSE($NYX) yesterday. While it’s fun to analyze the strategy and financing of the deal, taxes are sometimes an integral part of any deal. The amount of debt issued can carry with it tax advantages to make the deal new present value positive versus using equity or cash.
ICE has one big advantage over other exchanges in the US, they pay less in state corporate taxes. The CME ($CME) and CBOE ($CBOE) start out at a competitive disadvantage to ICE by 3.5%. Georgia, where ICE is based has a 6% corporate tax rate. Illinois has a 9.5% tariff. New York has a 7.1% rate.
No doubt, that if ICE/Nasdaq win this battle, they will be based in Atlanta, GA, simply to pay less in taxes. To be sure, the exchange will have operations in New Jersey and New York, but for tax purposes I bet they head down to the land of cotton. As a shareholder of CME, I hate to give up a 3.5% edge to my competitor. Wonder what CBOE shareholders are thinking?
Read more at Points and Figures
Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.
"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.
Please Help Support BeforeitsNews by trying our Natural Health Products below!
Order by Phone at 888-809-8385 or online at https://mitocopper.com M - F 9am to 5pm EST
Order by Phone at 866-388-7003 or online at https://www.herbanomic.com M - F 9am to 5pm EST
Order by Phone at 866-388-7003 or online at https://www.herbanomics.com M - F 9am to 5pm EST
Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!
HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation.
Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.
MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)
Oxy Powder - Natural Colon Cleanser! Cleans out toxic buildup with oxygen!
Nascent Iodine - Promotes detoxification, mental focus and thyroid health.
Smart Meter Cover - Reduces Smart Meter radiation by 96%! (See Video).