UPDATE 1-Deutsche Boerse raises stake in EEX energy exchange

* Deutsche Boerse secures option to buy 58.19 pct EEX stake

* Deal to be completed by Q2 2011

* Traditional exchange pounces as its rivals bulk up

(adds detail, background)

FRANKFURT, Dec 23 (BestGrowthStock) – Deutsche Boerse (DB1Gn.DE: )
tightened its grip on European energy exchange EEX to reduce its
dependence on trading stocks and derivatives, a business that
has come under pressure from new competitors.

Through its derivatives arm Eurex, Deutsche Boerse secured
an option to buy a stake of up to 22.96 percent in the EEX from
Landesbank Baden-Wuerttemberg (LBBW) (LBWGga.F: ), a move that
could hand Boerse a 58.19 percent stake in EEX, it said on

The transaction will cost Deutsche Boerse up to 71.3 million
euros ($93.65 million) and expands the German exchange
operator’s reach into fast-growing commodities markets.

EEX and Eurex are already cooperating in trading and
clearing of emission rights and power derivatives.

The shares are to be transferred at a price of 7.15 euros
per share plus a premium of 0.60 per share in the event that
Eurex becomes the majority shareholder.

EEX, a Franco-German exchange, accounts for power trading
equivalent to a third of European consumption. Its activities
span power trading in continental Europe, which has been linked
to the Nordic region and the UK via cables, and already reaches
through to Hungary.

The Frankfurt-based exchange operator’s move comes shortly
after alternative platforms Bats Europe and Chi-X Europe moved
to bulk up in a bid to win market share from traditional
exchanges. [ID:nLDE6BM167]

European energy exchange EEX last week said its revenue
streams from power futures, gas and carbon trading were up
year-on-year in 2010 as the bourse reaped benefits from market
share growth and clearing activities.

Finance chief Iris Weidinger said revenue from the flagship
contract electricity futures, would rise 12 percent from the
23.6 million euro result last year, while gas revenue would
nearly triple and that of carbon dioxide double this year.

Graphic on EEX memberships by country

For a graphic on market shares of European share trading,
click on http://r.reuters.com/reh53r

(Reporting by Michelle Martin and Edward Taylor)

UPDATE 1-Deutsche Boerse raises stake in EEX energy exchange