International Securities Exchange Holdings (NYSE:ISE) shares jumped $18.84, or 41.21%, to $64.56 today after Deutsche Boerse AG said it is in talks to acquire the company for $2.8 billion, or $67.50 per share. The company confirmed that it was in advanced discussions regarding a business combination while Deutsche Boerse said its board will recommend the transaction to its supervisory board. The acquisition would make Deutsche Boerse a large player in the U.S. options trading business.
Many other stock exchanges are also looking to combine or expand their businesses into other financial products that have higher profit margins than simply stocks. Perhaps the most visible company seeking an acquisition is the Nasdaq, which recently lost its bid for the London Stock Exchange. Many investors expect the company to buy its way into the options and derivative businesses through an acquisition like the Chicago Board of Trade. Deutsche Boerse's move places increased pressure on the exchange to act more quickly to secure its own spot in the international marketplace. The acquisition of ISE puts the exchanges in a renewed takeover spotlight, particularly companies like the
Chicago Mercantile Exchange (NYSE:CME) and
CBOT Holdings Inc. (NYSE:BOT)!
Related CompaniesCBOT Holdings, Inc. (CBOT)Chicago Merchantile Exchange (CME)Nasdaq Stock Market Inc. (NDAQ)