CME Counters ICE's Enhanced Bid For CBOT With Special Dividend Offer -- WSJ

The Wall Street Journal is reporting that the Chicago Mercantile Exchange [CME] will add to the value of its $10.3 billion all-stock bid for the Chicago Board of Trade [CBOT] by offering a special dividend to CBOT shareholders. The move is seen as a response to IntercontinentalExchange's [ICE] enhanced bid from Tuesday, which offered to supplement its all-stock offer with some cash. The timing of the offer coincides with CBOT's board meeting Thursday morning to discuss the latest developments in the bidding war for their company. It is believed CBOT's board prefers CME's offer even though it is for less, because the integration of the two Chicago-based companies will be smoother.

Sources: Wall Street Journal, CNN Money, MarketWatch
Commentary: ICE Offers CBOT 'Enhanced' Merger Proposal • CME One-Ups ICE In CBOT Bidding By Gaining Regulatory Approval • CBOT Taking ICE Offer Seriously: Money Talks
Stocks/ETFs to watch: CBOT Holdings, Inc. (BOT), Chicago Mercantile Exchange Holdings Inc. (CME), IntercontinentalExchange, Inc. (ICE). Competitors: NYSE Euronext (NYX), NYMEX Holdings Inc. (NMX), International Securities Exchange Inc. (ISE)

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