IntercontinentalExchange proposes merger with Chicago Board of Trade

By Lisa Kerner

Charlotte, N.C., March 15 - IntercontinentalExchange, Inc. made a proposal to CBOT Holdings, Inc. to combine the two companies in a stock- for-stock transaction.

Under the proposal, IntercontinentalExchange would issue 1.42 of its shares for each CBOT class A common share, valued at $187.34 per share.

The $187.34 per share value also represents a 10.5% premium to the current value of the pending acquisition of CBOT by Chicago Mercantile Exchange agreed to in October, according to a company news release.

IntercontinentalExchange said it would commit to the same terms as the pending offer regarding CBOT's open auction markets and will grow the CBOT metals complex.

In addition, IntercontinentalExchange believes its transaction could be completed more quickly.

IntercontinentalExchange is an Atlanta-based electronic energy marketplace.

CBOT Holdings operates the Chicago Board of Trade, a Chicago derivatives trading exchange.

Chicago Mercantile Exchange is the first publicly traded U.S. financial exchange.

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