A day after the US Department of Justice (DoJ) put its stamp
of approval on Chicago Mercantile Exchange (CME)'s attempted
buyout of Chicago Board of Trade (CBoT), a persistent
Intercontinental Exchange (ICE) fired off another enhanced
offer on 12 June.
While DoJ's approval removed a cloud over the CME bid, the
renewed ICE proposal included $2.5bn in cash to CBoT
shareholders who were concerned about sagging share prices if
ICE has led in the public relations battle in recent weeks
and chairman and CEO Jeff Sprecher has won over many CBoT
shareholders in his direct meetings as well as by consistently
tweaking the ICE offer to appease those members, who
collectively represent the majority of shares. Whether the ICE
bid has won over a majority of shareholders is debatable, but
many of them believe the latest ICE offer has put pressure on
CME to increase its offer again ahead of the 9 July vote on the
proposal. The current ICE bid roughly pays $211 per CBoT share,
or about $1bn more than CME's offer of $191.98 per CBoT share.
CBoT shares closed on 13 June at 201.50, up 49 cents.
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