billp70964

CBOT Takeover Battle: Show The Love

The analysis is quite superficial. There was no evidence at all at the two meetings of shareholders of BOT with both CME management and BOT management that there was any "Chicago pride". It was much more about the money and the fit.

Both CME and BOT are currently very, very involved with technology. Although both maintain floors (as does NYBOT an ICE subsidiary) both are automated to the tune of a very high percent of futures orders (in the 90% area) are electronically executed. This hardly connotes a Luditte membership at either exchange.

BOT members believe ultimately there are more synergies between BOT and CME. However, they are not idiots. If the spread between the market prices for BOT alone, the ICE proposal and the CME bid remain where they are, it is doubtful either of the two deals will win.

The CME (in a huff) views ICE as some sort of unworthy foe. The ICE doesn't want to bid against itself. The market continues to say "NO!" to both deals.

Stay tuned!