Chicago Board of Trade pushes for Merc bid

Chicago -- The Chicago Board of Trade urged stockholders and members to approve the Chicago Mercantile Exchange bid, saying a competing offer carries significant risk.

The Chicago Mercantile Exchange tendered a $10.5 billion offer for the Chicago Board of Trade, which will be up for a July 9 vote by CBOT shareholders.

The Merc could change its offer after Monday, the last day it could alter its proposal and meet the July 9 voting deadline, security laws require the vote be postponed until shareholders have at least 10 business days to consider the terms, the Chicago Sun-Times reported Monday.

IntercontinentalExchange Inc., extended a $11.67 billion bid for the CBOT.

In its letter to shareholders, CBOT officials said the ICE stock price "is clearly being driven by a takeover premium, not by fundamentals," citing analysis and comments from Goldman Sachs, Bank of America, Deutsche Bank and other who spoke against the bid.

"A CBOT-CME combination delivers real and immediate and long-term benefits for members, shareholders and customers," CBOT said. "Together, we will be the industry's leading exchange with a powerful growth strategy."

Copyright 2007 by United Press International.