Mack the Knife joins NYSE deal rebels

WALL STREET heavy hitter John 'Mack the Knife' Mack has joined New York Stock Exchange seat holders, led by financier Kenneth Langone, in looking for a way to derail the merger of the bourse with electronic trading company Archipelago.

Mack, a former Morgan Stanley president, Langone and an increasingly large band of seat holders on the Exchange are angry about the deal, which they say values the NYSE too cheaply.

Mack's support gives Langone credibility and is sure to attract others who are already saying they will look closely at any Langone offer.

'I have serious reservations about the whole concept of Archipelago to start with, and I wonder if Langone isn't in there trying to save the system as it is,' said Richard Heckmann, former chairman of the NYSE's listed company advisory committee. 'The seat of capitalism is the NYSE - and now we want to turn this thing over to computers?'

Langone has chaired a meeting to explore possibilities with 10 people including hedge fund manager Stanley Druckenmiller, a former strategist for billionaire investor George Soros, and representatives of major investment banks Merrill Lynch and Bear Stearns.

Some NYSE members dismiss Langone's manoeuvrings as payback for being sued by state regulators over his role in former NYSE chief executive Dick Grasso's alleged excessive pay package, but he is gathering a lot of support.