Deutsche Boerse AG, the operator of the Frankfurt stock exchange, unveiled Monday a $2.8-billion takeover bid for the New York-based International Securities Exchange (ISE).
The Deutsche Boerse bid for the ISE, which is a leading US options exchange, also includes the Eurex derivative market, a joint offshoot of Deutsche Boerse and the SWX Swiss Exchange, Switzerland's national stock market operator. „The supervisory board of Deutsche Boerse AG, the supervisory board of SWX and the ISE board of directors shall decide on the transaction today,” Deutsche Boerse said in a statement. The Deutsche Boerse $67.50 cash bid for the ISE would help to price open the fast-growing US options trading market for the Frankfurt exchange, transforming it into a major player in the US. The ISE is the second-biggest options market behind the Chicago Board Options Exchange. The Frankfurt's exchange's bid also comes amid signs of consolidation in global financial markets.
The New York Stock Exchange and the Paris-based pan-European Euronext, recently completed a deal to create the world's biggest stock market, NYSE Euronext Inc. Deutsche Boerse chief Reto Francioni has indicated he was on the lookout for a possible merger target after losing out in the battle with the New York Stock Exchange for Euronext. „The consolidation is continuing but not without the Deutsche Boerse,” Francioni told Germany's weekly WirtschaftsWoche. Shares in ISE, which was listed on the stock market about 2.0 years, soared by about 30% in pre-opening trading in New York. But Deutsche Boerse's takeover plan for ISE also to be approved by several key groups, including the management of the Swiss exchange and the ISE as well the ISE stockholders. (monstersandcritics.com)