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 day.
"The deal, including the pricing, is the result of a very thorough process," Eurex CEO Andreas Preuss said during a press conference on...