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...