IntercontinentalExchange (ICE) made the largest waves during
Futures Industry Association's annual conference in Boca,
Florida, by announcing plans to merge with Chicago Board of
Trade (CBoT) in a deal worth $9bn that is hoped to be completed
by the end of the year.
The proposal calls for a combination of a stock-for-stock
transaction of 1.42 ICE shares valued at $187.34 per CBoT share
based on closing price of ICE shares on 13 March. This bid
represents a 12.8% premium to CBoT's current share price, and
is slightly more than 10% above the value of the Chicago
Mercantile Exchange (CME) bid, which totalled $8bn.
CBoT shareholders would own approximately 51.5% of the
combined company and, in addition to receiving a premium, would
also obtain a coveted clearing house with ICE, which recently
purchased New York Board of Trade and its clearing facility.
ICE also snapped up International Petroleum Ex-change back in
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