The rumour mill continued to swirl at New York Board of
Trade (Nybot) last week as executives tried to calm frayed
nerves regarding talk of a potential takeover by
Intercontinental Exchange (ICE), members fearing such a tie-up
would lead to a loss of its floor trading.
Talk of a takeover, believed to value Nybot at around
$900m, prompted Nybot chairman Fred Schoenhut to issue a
memo to members saying that management had been looking into
all options available but that nothing had been presented
The exchange was also known to have hired Brown Brothers to
help assist it in looking at any possible mergers or
acquisitions. Meanwhile, market observers were weighing up the
pros and cons and reasons behind a possible takeover.
The perception in the market was that ICE could achieve
several strategic objectives with a merger with or acquisition
of Nybot, sources said. Topping the list was ICE's lack of an
integrated clearinghouse, which it would gain if it succeeded
in a takeover of the New York exchange.
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