Amex explores deals and demutualization

By Mark McSherry

NEW YORK (Reuters) - The American Stock Exchange has held discussions with possible merger partners and has received interest from buy-out firms as it tries to decide whether to demutualize or seek a deal, the chief executive of the Amex said on Monday.

"We have the option of being independent; we have the option of having strategic investors; we have the option of a merger with a compatible organization," said Neal Wolkoff, Amex chief executive, at the Reuters Exchanges and Trading Summit in New York.

The Amex said in January it hired Morgan Stanley to advise it on its demutualization plan as well as "potential strategic future initiatives." A demutualization would convert the Amex from a not-for-profit firm into a for-profit corporation.

Asked if he would prefer a merger at home or abroad, Wolkoff said: "If you are talking about a full-fledged merger ... we see more synergies from an international partner than a domestic partner.

"We could be a tremendous asset as the American part of an international organization."

Wolkoff confirmed there has been interest in the Amex from private equity companies but said there have been "no specific offers or anything of the kind" from buy-out firms.

"Clearly, equity investment firms have been in the space talking -- no question," Wolkoff added.

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