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Showing posts from June, 2007

CBOT Bids Go to the Wire

In the run up to the July 9 shareholder vote on the potential acquisition of the Chicago Board of Trade (CBOT) by the Chicago Mercantile Exchange (CME), the action has been fast and furious, with revised bids from both the CME and the Intercontinental Exchange (ICE) vying for the attention of CBOT shareholders and members. Leadership from the CME and CBOT approved another revision to their definitive merger agreement on June 14, this time incorporating a one-time dividend of $9.14 per share for CBOT shares, and two options for CBOT full members who hold exchange right privileges (ERP) in response to ICE's sweetened bid that came a couple days earlier. The CME also uncapped the amount on legal expenses for the ERPs. These moves follow the May 30 meeting ICE Chairman and CEO Jeff Sprecher had with CBOT shareholders and members, when he pointed out on several occasions that in putting together his competitive bid for the CBOT he attempted to mirror the CME offer in every way but price