Surprise bid sets tone for exchange wars

The Intercontinental Exchange has really shaken up the options exchange world with its surprise $10 billion bid for the Chicago Board of Trade. Recall that the CBOT already had a deal back in October with its historic rival, the Chicago Mercantile Exchange. In fact, CBOT shareholders were to vote on the CME proposal on April 4. The ICE obviously has other plans. It thinks it offers a cleaner deal from a regulatory perspective; there are some anti-trust issues with the CME-CBOT proposal. It would certainly create a derivatives super power. The big question here is whether the CME will sweeten its bid. Some analysts think it is well-positioned to outbid the ICE. However, if the CBOT decides to pursue the CME deal, you have to wonder if the ICE will go hostile. Investors are sensing a war.

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- here's an AP article