Posted by
alfredlester on Sunday, October 18, 2009 4:30:54 PM
NEW YORK (Reuters) – CME Group Inc (CME.O), the world&&9;s largest derivatives exchange, is in talks to take over the Chicago Board Options Exchange in a deal that would value the largest U.S. options market at up to &&6;5 billion, according to Crain&&9;s Chicago Business.
"Acting through intermediaries, officials at the exchanges have held informal discussions over the past month about a combination," but no formal bid is on the table, Crain&&9;s cited sources in a report on Sunday.
Further talks are on hold until after Wednesday, the report said outdoor fireplace plans. A deal of that size would mean a big payday for CBOE members, with each CBOE seat valued at about &&6;4 million, about 50 percent more than they fetch today, the report said.
The &&6;5 billion price tag would value CBOE at about 20 times its expected annual earnings after it converts to a shares-based private company from a member-owned exchange, the report said.
(Reporting by Franklin Paul; editing by Gunna Dickson)
CME in informal talks to take over CBOE: report