ISE Exchange May Get $2.6 Billion Bid from Deutsche Boerse -- WSJ

The Wall Street Journal Online reports that Deutsche Boerse AG is in advanced discussions to buy International Securities Exchange Inc. [ISE] for $2.6 billion, or about $68/share. Unnamed sources say Boerse CEO Reto Francioni will present his plan to acquire the New York based electronic exchange a board meeting Monday. If the board agrees, the source says, the deal could move ahead quickly. ISE is the largest options market for individual stocks in the U.S. and the #2 U.S. options market overall, behind the CBOE. Stock exchanges globally have been merging and/or expanding, particularly into vehicles like options that have higher profit margins than stocks. Options growth presently outpaces that of stocks. Deutsche Boerse co-owns the Eurex exchange with Swiss SWX group; it is unclear whether the ICE, if acquired, would be managed under the Boerse or the Eurex.

Sources: Wall Street Journal
Commentary: ETF Idea: U.S. Financial Exchanges • International Securities Exchange Flies Under the M&A Radar • A Look At Stock Exchange Stocks
Stocks/ETFs to watch: International Securities Exchange Inc. (ISE). Competitors: CBOT Holdings Inc. (BOT), Chicago Mercantile Exchange Holdings (CME), Nasdaq Stock Market Inc. (NDAQ), NYSE Euronext (NYX), IntercontinentalExchange Inc. (ICE)

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