Exchange Love Triangle: Merc Ups Offer Before Shareholder Vote

Posted by , Jul 06, 2007, 12:22pm

Chicago Board of Trade 2.jpgWith a shareholder vote on Monday, the Chicago Mercantile Exchange increased its bid for the Chicago Board of Trade again today, all but securing a deal set to create the largest derivatives exchange in the world.

The new Merc bid is valued at $11.3bn, still short of the rival $11.4bn offer from the Atlanta based IntercontinentalExchange, but enough to win the support of Caledonia Investments, a major CBOT shareholder that previously resisted the Merc's advances. The CBOT board has favored the cross-town merger since talks began last October and both CBOT and CME believe enough shareholder support now exists to push the deal through.

Unable to take a hint, ICE sent a letter to top CBOT officials on Tuesday saying it would consider sweetening its bid, the Wall Street Journal reports. Nonetheless, expect a new Chicago superexchange to come into being on Monday.


CME Sweetens CBOT Bid Ahead of Next Week's Vote [Wall Street Journal]

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Posted in: CBOT, Chicago, Exchanges

Comments

Posted by , Jul 06, 2007 12:33PM

Who are the Chicago equivalent of the Vinnys? I bet they're happy.

Posted by PTRADES, Jul 06, 2007 12:36PM

futures is where the action is, leverage, leverage, leverage, yes, we have our vinnys in chi-town too

Posted by RandomGirl, Jul 06, 2007 12:49PM

What a disaster. ICE would run a better, more professional organization. If CME and CBOT merge, it's going to be the same good ole' boys club of undereducated, overweight, burly trader-cavemen. Those days are dying and need to be put out of their misery ASAP: the new (ivy-league educated, slightly nerdy) traders are coming in.

Posted by jt, Jul 06, 2007 12:58PM

not all (slightly nerdy) traders are ivy-league educated my blue-blooded friend

Posted by anon, Jul 06, 2007 1:12PM

Vinnys are not being replaced, they are being disintermediated.

Posted by , Jul 06, 2007 1:36PM

i thought they are all irish up there. the Ryans

Posted by chi-monster, Jul 06, 2007 1:38PM

Yes, there are many irish papists here

Posted by PTRADES, Jul 06, 2007 2:06PM

or...made redundant

Posted by jt, Jul 06, 2007 3:06PM

Im taking it with a grain of salt (very small one at that) but a few people on wsj Deal Journal seem to think that ICE sucks (presumably they aren't shareholders) for various reasons. Anyone have any insight?

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