5 billion euros 34 for a net loss of EUR 21 billion amounting to near record of 2006New York City it is more readings or other Conversations withCruel dilemmaWho sows the wind harvest stormIts application will therefore differentiated according to the caseThe directive has provided a number of criteriaThis silent revolution occurred between 2001 and 2005The American goddaughterMovement is evidence by walkingAnd marriage missed between AOL and Time Warner became the case to avoidDo not rely in the absence of election postersThe Chicago Board of Trade (CBoT) enough to quench the thirst of Jeffrey Sprecher, the highly active pattern of the IntercontinentalExchange (ICE) Yesterday, while he just barely complete the acquisition of one of the oldest U.S. commodity markets, the New York Board of Trade (NYBoT) for about $ 2 billion, Jeffrey Sprecher has launched an offer unsolicited on the second derivatives of Chicago, the CBoT award, developing to merge friendly with the Chicago Mercantile Exchange (CME).
The CBoT has indicated that he would "examine" the new proposal, without more detail.
The transaction is entirely by Exchange of shares, with a parity of 1.42 new action of the ICE for each action of the CBoT. However, Jeffrey Sprecher does not already out of cash to win. The WEC, he plans a mixed transaction, in exchange for shares and cash: 0,3006 action CME or the equivalent in cash with a ceiling of $ 3 billion.
On the basis of the course of yesterday, the transaction values the CBoT to $ 9.6 billion or 3.5 less than the capitalization of the latter, an increase of more than 13 since the announcement of the ICE. Report in the CBoT on the eve of the launch, the premium is in contrast to 12.8. Compared to the supply of the WEC, always with the course of Wednesday, the ICE offers a higher price of 10.5. Yesterday, the CME merger offer appreciated the CBoT to $ 9.15 billion, corresponding to a discount of more than 8.
The main feature of the proposed union of the ICE is that the current shareholders of the CBoT would, in the event, hold the majority of the new set, while those of the WEC would hold about 70 percent of the group with its ally of Chicago. The ICE option is more careful to preserve the identity of the CBoT, moving the seat of the future group from Atlanta to Chicago. Of course, Jeffrey Sprecher would remain at the controls...
Rates, equities and currencies
In total, the strict point of view of the market, the two alternative proposals should be re-assessed for membership of the shareholders of the CBoT. At the industrial level, the ICE highlights the expected synergies ($ 240 million a year to a minimum since the finalization of the merger) with the creation of a market leader at the time of three regulated spaces, those of the CBoT, the NYBoT and London's ICE Futures (formerly International Petroleum Exchange, second world market contracts on energy in June 2001)a strong electronic platform of negotiation by mutual agreement and an own clearing house, inherited from the NYBoT. Since January 2004, the CBoT uses the services of the CME clearing house.
Finally, the combination by the ICE allows him out of the narrow field of raw materials by adding to its range of products of many contracts in rates, stock indices and monetary parities. He would also inherit juicy derivatives in gold, silver and grains. The market model would be always centered on natural resources, but the ICE would operate a significant diversification. Conversely, a CME and a CBoT grouped together would be stronger on raw. Globex, the computer platform of exchange of the WEC, rating already contracts in energy and metals from the New York Mercantile Exchange (Nymex).
The counter-proposal of the ICE is both defensive and offensive. It is based on the hypothesis that the marriage between the two exchanges of Chicago, planned for the end of the semester, may encounter serious difficulties on the sides of the competition authorities. On 1 December, the US Justice Department antitrust division sought additional information before giving its go-ahead still pending. The ICE had to hurry finally after two markets to accelerate the technical preparation of integration.
