The project was well received by analysts

After a long period observation and rumours, the more aggressive and the youngest of the American raw electronic markets, the IntercontinentalExchange (ICE), founded in May 2000, resumed external growth path for the New York Board of Trade (NYBoT), first World Fellowship of tropical products, a merger that values the company market 136 years old about 1.165 billion ("Les Echos" from September 14). The terms of the transaction, announced as early as Wednesday dans outlined by the "New York Post", include the payment to the 967 members of the NYBoT for $ 400 million in cash and the allocation of 10,297 million shares of the ICE. Friday, they have singed leaping 15.04 74,35 $ exhibit.

Two conditions

The grouping, supported by the Board of Directors of the NYBoT, should be finalized at the end of the first quarter or early in the second quarter of 2007. However, two conditions must be met to complete: getting the green light by the regulator of the U.S. markets of derivatives (excluding shares), the Commodity Futures Trading Commission (CFTC), and, above all, the approval by two-thirds at least of the members of the NYBoT.

This last part is not easy. The price proposed by the ICE is certainly attractive, because it exceeds 42 evaluation of the New York Stock Exchange made on the basis of the last transaction dated prior to the announcement of the merger, to a seat as member of the NYBoT (850,000 dollars September 6). The escalation of the course the ICE Friday, sign of the enthusiastic reception that the market has made to the proposal for consolidation, also argues for a favourable reception on the part of stakeholders in New York instead. On the other hand, some members may fear that marriage leads, in the term, a disappearance pure and simple of the Prosecutor's Office for all computer, which would result in the certain marginalization of many of them.

The ICE, which, in June 2001, has acquired the second global stock exchange energy, the London International Petroleum Exchange (renamed from ICE Futures), has mastered the matter. In June, it became the electronic market leader of crude oil by volume of daily transactions, exceeding for the first time his direct rival, the New York Mercantile Exchange (Nymex). In order to convince the undecided, the presentation of the new set, the Executive Chairman of the NYBoT assured that "the Prosecutor's Office is a vital element of success." Same tone in Jeffrey Spreacher, founder of the ICE and his number one present: "the Prosecutor's Office works very well." It is interesting to see how the NYBoT has managed to maintain liquidity.

Identify synergies

What happens in its development, the new company to market 85 owned by the current shareholders of the ICE and 15 by the NYBoT intends to identify annual synergies before tax of the order of 50 million thus divided: 41 million from the compensation activity, 10 million cost savings and 6 million for the extension of the electronic negotiations. According to its promoters, the new financial services group will be able to generate additional profits within twelve to eighteen months after the merger. The project was well received by analysts. The operation "presents an obvious strategic interest for the ICE in terms of compensation and potential synergies in energy rated products", summarizes them.