European giant jumps on consolidation bandwagon
Eurex's $2.8bn unsolicited approach to buy US options market
International Securities Exchange (ISE) could lead to a number
of counter offers, industry experts have said.
The bid is to be 85% funded by Deutsche Börse and 15%
by Eurex's co-owner Swiss Exchange, to create what Eurex
describes as, "the largest transatlantic derivatives
marketplace". A definitive merger agreement was approved by the
boards of all firms on 30 April.
One market source said that the deal was structured at a
premium in order to deter other bidders seeking to cash in on
the lucrative US options market. Eurex has offered ISE $67.50
per share, a 50% premium to 27 April's closing price.
ISE was trading at $66.30 on 30 April, up 45% for the
"The deal, including the pricing, is the result of a very
thorough process," Eurex CEO Andreas Preuss said during a press
conference on 1 May.
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