NEW YORK, Oct 18 (Reuters) - CME Group Inc, the world'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 $5 billion, according to Crain'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's cited sources in a report on Sunday.
Further talks are on hold until after Wednesday, the report said. A deal of that size would mean a big payday for CBOE members, with each CBOE seat valued at about $4 million, about 50 percent more than they fetch today, the report said.
The $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) (To read more about our Media news, visit out MediaFile blog online at http://blogs.reuters.com/mediafile ) Keywords: CBOE/CME (Email: Franklin.Paul@thomsonreuters.com; +1 646 223 6195; Reuters Messaging: Franklin.Paul.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
'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's cited sources in a report on Sunday.
Further talks are on hold until after Wednesday, the report said. A deal of that size would mean a big payday for CBOE members, with each CBOE seat valued at about $4 million, about 50 percent more than they fetch today, the report said.
The $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) (To read more about our Media news, visit out MediaFile blog online at http://blogs.reuters.com/mediafile ) Keywords: CBOE/CME (Email: Franklin.Paul@thomsonreuters.com; +1 646 223 6195; Reuters Messaging: Franklin.Paul.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
