Chicago Mercantile Exchange (CME)'s increased offer for
Chicago Board of Trade (CBoT) may have edged it closer to
winning over the crucial member shareholder block at its
target, but more persuasion or sweetening may be needed to
close the deal.
CME raised its bid for CBoT on 11 May by offering 0.35 CME
shares, up from 0.3006 shares for each CBoT share, an offer
that is worth roughly $9.9bn depending on the stock price.
While the latest offer is more than its original $8bn bid from
CME last October, it still falls short of Intercontinental
Exchange's (ICE) $10.5bn offer. CME's new bid also prices CBoT
at $186 a share, which was below its share price of $196 on 16
The latest bid was endorsed by the CBoT board of directors
who believe there is more security and upside with a combined
CBoT-CME entity than there is with ICE. But members, who still
own the great majority of CBoT shares and essentially are the
group that will rule for or against a CME deal on 9 July,
differ widely on the CME's latest offer.
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