Eurex $2.8bn takeover of ISE approved but expensive

International Securities Exchange (ISE) shareholders have approved the sale of ISE to Eurex on 30 July, a deal worth 2.8bn – reigniting the suggestions by market insiders that Eurex has overpaid for control of the American exchange.David Krell, ISE president and CEO hailed the shareholder agreement, describing it as a “significant milestone”. “We are very pleased that our stockholders support this combination, which is an important strategic step to grow ISE’s business in the years ahead. Currently, we are continuing with the necessary steps to complete this transaction as promptly as possible so that we can move forward to the integration phase,” said Krell.  However many market sources have indicated that Eurex has paid over the odds for ISE. These concerns have arisen in the wake of exchange consolidation trend, especially the Chicago Mercantile Exchange (CME) acquisition of Chicago Board of Trade (CBoT), leading many analysts to question the prices...