Chicago Merc and C.B.O.T. merger closer to approval
July 10, 2007
by Eric Schroeder
CHICAGO — Chicago Mercantile Exchange Holdings Inc. (C.M.E.) and CBOT Holdings, Inc. (C.B.O.T.) announced preliminary results indicate the shareholders of both companies have approved the proposed merger of the two companies. The results are based on a review of the proxies voted at a July 9 special meeting held by the parties’ respective proxy solicitors. In addition, preliminary results also show that C.B.O.T. members voted to approve certain related matters in a separate member vote.
The results of the C.B.O.T. shareholder and member votes are subject to official certification by the independent inspectors of election, IVS Associates, which is expected to occur in the next few days. The companies expect to complete the merger once IVS has certified the results.
"We are pleased that shareholders of both companies have demonstrated support for this groundbreaking merger," said Terry Duffy, executive chairman of the C.M.E. "The combination of C.M.E. and C.B.O.T. creates a strong international company better positioned to compete with growing global exchanges and the over-the-counter market. The combined company will transform the global derivatives industry and create efficiencies for customers and members while delivering significant benefits to our shareholders."
Upon completion of the merger, the combined company, which will be called CME Group Inc., a CME/Chicago Board of Trade Company, will be the world’s largest and most diverse exchange, providing products in all major benchmark asset classes.