Rumble Over the CBOT Escalates Intriguing.... ICE takes on the CME juggernaut and out bids them by over $1 Billion for CBOT.... CME, arrogant as ever, slams them and calls them an "upstart", says they can't hang with the big boys, but then refuses to raise their bid... ...CBOT shareholders are now seeing dollar signs as their stock skyrockets. Now they want the CME to show them the money. Can little old ICE hang with the big boys? Will the CME get their heads out of their arrogant butts and fight for the CBOT? Will the CBOT shareholders ever stop rolling in their money?
Hmmm...interesting article. I think the CME needs to swallow their pride, shut the f*ck up in the press and get ready to dig into their wallets. The CBOT wants cash....it's time to put up or shut up. I think the best part of this whole deal is that a tiny little Atlanta futures exchange just might snatch the CBOT away from the most powerful derivatives exchange in the world. This is a good lesson for everyone. If you get overconfident and arrogant, someone is going to sneak up on you and take you by surprise. The CME is learning this lesson the hard way.
Couldn't agree more....and it couldn't happen to a nicer group of guys. These CME execs need to get their comeuppance, and ICE is giving it to them. It is truly a pleasure to behold.
I hope ICE takes them to the cleaners!!!!! Seriously, though, ICE stock has dropped quite a bit over the past week, so the value of their deal is diminishing every day. All the CME has to do is reach into their incredibly deep pockets and the CBOT is theirs again. However, do you really think the Department of Justice will let the CME control 87% of the U.S. futures markets? Not bloody likely....
Q: Can ICE hang with the big boys? A: Probably not. They just want some good publicity. Q: Will the CME get their heads out of their arrogant butts and fight for the CBOT? A: Doesn't look like it. They think their bid is so superior that they don't have to bother matching ISE's proposal. "Pride goeth before a fall." Q:Will the CBOT shareholders ever stop rolling in their money? A: ICE's stock has dropped over the past week, so the value of their proposal is not as high as it once was. Perhaps the market will resolve this situation for us by driving ICE's stock down to the point where their offer no longer has any premium over the CME's?
ICE Exec Meets with CBOE Brass on CBOT Offer Just saw that the ICE chairman met with the CEO of the CBOE this week. They are definitely trying to up the ante in this deal by trying to hammer out the CBOT's exercise right on the CBOE. CBOE seats are currently trading in excess of $2 million, that values a potential CBOE IPO at over $2 billion. There's no way that CBOT shareholders want to surrender their piece of that bonanza. ICE's CEO knows that, and he's trying to play all of his cards to trump the CME.