Shareholders Approve $11.9B CME-CBOT Merger

Includes: BOT, CME, ICE
by: Steven Towns

In a press release, CBOT Holdings Inc. and Chicago Mercantile Exchange Holdings Inc. [CME], said preliminary results of a shareholder and member vote indicate approval of the proposed merger of the two Chicago derivatives exchanges. The results are expected to be officially certified in the next few days. BOT-CME-ICE-chart-07-09-07 Last Friday, CME raised its bid for CBOT for a third time -- valued at nearly $12b -- delivering a knockout blow to rival bidder IntercontinentalExchange Inc. [ICE]. The Wall Street Journal reports analysts now see ICE as a takeover target, with NYSE Euronext as a potential suitor given its desire to expand in derivatives trading. The merged entity of CME-CBOT will be called CME Group Inc., a CME/Chicago Board of Trade Company, and "will be the world’s largest and most diverse exchange, providing products in all major benchmark asset classes," according to the press release. Shares of CBOT fell 0.5% to $222.82 and CME lost 0.7% to $570.58, while ICE rose 0.4% to $156.78.

Sources: Press release, Bloomberg, MarketWatch, Wall Street Journal
Commentary: CME Boosts CBOT Bid Again; Merger Approval Expected in Monday VoteICE-CME Exchange Wars: A Mexican Standoff?ICE-CME Exchange Wars Redux
Stocks/ETFs to watch: CBOT Holdings, Inc. (BOT), Chicago Mercantile Exchange Holdings Inc. (NASDAQ:CME), IntercontinentalExchange, Inc. (NYSE:ICE). Competitors: NYSE Euronext (NYSE:NYX), NYMEX Holdings Inc. (NMX), International Securities Exchange Inc. (ISE)

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