The Battle for the Bourses

Chances are, you have never heard of them. But two activist hedge funds, New York-based Atticus Capital and London-based TCI, are helping to shape the future of the world's biggest stock exchanges. Last year they led a shareholder revolt that derailed a bid by Germany's Deutsche Borse for the London Stock Exchange. Now, they have emerged as key players in the maneuvering that led to the New York Stock Exchange's (NYX) May 22 bid for Paris-based stock exchange Euronext, for $10.2 billion.

Atticus and TCI, which together control almost 20% of Euronext shares as well as substantial stakes in the NYSE and Deutsche Borse, have been pressing the Paris-based mart to link up with either the New York or the German exchange. Last week, Atticus warned it would seek removal of Euronext's top management at the exchange's annual meeting on May 23 if it didn't offer a tie-up proposal to shareholders by then.