ISE shareholders approve merger with Eurex
27 July 2007 | 5829 views | 0
Shareholders of US options market International Securities Exchange (ISE) have approved a merger with Deutsche Börse's majority-owned Eurex subsidiary.
Under the terms of the $2.8 billion merger agreement, which were disclosed in April, ISE stockholders will receive $67.50 in cash for each ISE share held.
ISE says 99.7% of the stockholders who voted were in favour of the agreement.
"Our affirmative stockholder vote is a significant milestone as ISE and Eurex move forward to combine our two businesses to create the leading transatlantic derivatives marketplace," says ISE president and CEO David Krell in a statement.
Although the German Börse is acquiring ISE through its Eurex subsidiary, the New York-based exchange will continue to operate as a separate unit under US regulations.
The German exchange is contributing 85% of the total purchase price, with its Eurex partner SWX Swiss Exchange putting in the rest. The deal is expected to create $50 million in synergies, mainly in efficiency gains and cross selling opportunities.
ISE and Eurex expect the transaction to close in the fourth quarter of 2007, although the deal still requires approval from the US Securities and Exchange Commission (SEC).