The IntercontinentalExchange and the New York Board of Trade announced that NYBOT members overwhelmingly approved the proposed merger transaction in a special member meeting.
The transaction required that NYBOT members vote to approve and adopt the agreement and plan of merger by a two-thirds majority of the votes cast at the special meeting. Of the votes cast, 93% voted in favor of the transaction.
The NYBOT and ICE are working toward the launch of electronic trading of the NYBOT’s products. The NYBOT recently entered into a licensing agreement for the ICE trading platform to offer electronic trading of NYBOT products, for the first time in NYBOT’s history.
The transaction consideration will comprise approximately 10.297 million shares of ICE common stock and US$400 million in cash. Upon closing, NYBOT will become a wholly-owned subsidiary of ICE and will be a for-profit corporation. The companies announced the merger agreement on September 14, and the transaction is expected to close in early 2007.
“We are one very important step closer to consummating this historic merger,” said ICE chairman and CEO Jeffrey Sprecher. “We believe this is the strongest indication that the NYBOT membership shares our vision and drive to create the premier global commodity marketplace. Together, we will continue with our commitment to bringing innovation, breadth of product, superior trading and clearing technology and true efficiencies in this dynamic environment. Importantly, we believe the acquisition will provide significant value for our customers and shareholders.”
“Today’s vote is a major event in the history of our exchange, as our members choose to embrace the future,” said Frederick Schoenhut, chairman of the NYBOT. “IntercontinentalExchange is the perfect partner for NYBOT, as we both complement each others’ strengths and long-term strategic goals. Together we will offer customers around the globe the ability to trade a broad array of energy, agriculture, and financial derivative and OTC products. We believe our members and our customers will benefit from this merger.”
“It is vital to the future of NYBOT that we partner with a dynamic global exchange, and today we are close to seeing this vision become a reality,” said Harry Falk, NYBOT president and CEO. “We believe this transaction makes both exchanges more competitive and better equipped to compete globally. The ICE electronic marketplace is an excellent complement to the vibrancy and liquidity of our trading floor, and it will allow us to continue our record growth by offering our products on this dynamic platform.”
NYBOT members approve proposed merger with ICE
Exchanges preparing to launch electronic trading of NYBOT products
- By: James Langton
- December 12, 2006 December 12, 2006
- 08:10