NYSE Euronext cashed out of its investment in the National Stock Exchange after three years because "strategic avenues" failed to pan out there, the company's chief financial officer said on Tuesday.The New York Stock Exchange parent company will receive gross proceeds of $175 million from the sale of its 5 percent stake in NSE, which it said it will use to pay down debt. Reuters reported on Monday the buyer is Singapore state investor Temasek."When we first made the investment we thought of it as a strategic investment," NYSE Euronext COO Lawrence Leibowitz said on a conference call with analysts and media. "We found over time that there weren't a lot of strategic avenues open to us with NSE."NYSE Euronext, which runs exchanges in the United States and Europe, bought the stake in early 2007 for $115 million as part of a wider trend of large industry operators gaining footholds in developing economies. Frankfurt-based Deutsche Boerse and Singapore Exchange Ltd, for example, have 5 percent stakes in the Bombay Stock Exchange.While some investments led to lucrative technology and trade-routing deals, others did not."It really looked to us like it was turning into just a financial investment, at which point we said that's really not the business we're in," Leibowitz said on the company's quarterly financial results call. "We thought the best use of our capital would be to cash out and pay down the debt."NYSE Euronext's higher first-quarter profit met Wall Street expectations with the help of robust derivatives trading.(Reporting by Jonathan Spicer, editing by Maureen Bavdek)News posted by www.newsinfoline.com
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