CBOT receives merger bids

With an initial public offering (IPO) due in the next few months, the Chicago Board of Trade has received several merger bids from an unnamed source.

The CBOT said yesterday it had received "unsolicited, non-binding expressions of interest in a business combination with CBOT Holdings". It added that it would consider the proposals as well as other alternatives such as an acquisition or sale.

CBOT shareholders voted earlier this month (RiskNews, June 23) to go ahead with a share issue, possibly involving an IPO that could raise up to $150 million in the second half of this year. The company said at the time that this could lead to a merger.

While the CBOT has not identified the proposed merger partners, speculation centres around the Chicago Mercantile Exchange (CME). The two exchanges already collaborate - since the signing of an agreement last year the CME has cleared CBOT's trades as well as its own.