Conceding defeat following word that Chicago Board of Trade (CBOT) members and shareholders had voted Monday in favor of merging with the Chicago Mercantile Exchange (CME) (see Daily GPI, July 10), Atlanta-based IntercontinentalExchange (ICE) said late Monday that while it was disappointed in the outcome, it thought the process was beneficial for its own stockholders as well as for stockholders of CBOT.

The vote Monday brought to an end a heated battle for CBOT’s hand, which had intensified over the last two months as CME and ICE took turns touting their proposals while attempting to discredit the opposing offer (see Daily GPI, July 9; July 5; July 2). While CME’s offer had the approval of CBOT’s board, ICE continued to attempt to convince CBOT’s membership and shareholders that its offer was “superior” on all fronts. CME’s final offer on Friday was valued at $11.9 billion, while ICE’s most recent offer stood at $11.7 billion.

“Despite our disappointment in the outcome, our proposal has brought many benefits for both CBOT and ICE stockholders,” said ICE CEO Jeffrey C. Sprecher in a letter Monday to CBOT’s members and shareholders. “For CBOT stockholders, ICE’s involvement has created nearly $3 billion in additional value through our willingness to recognize the true worth of your company. For ICE stockholders, we have shown our ability to leverage our position as one of the fastest growing, most global and most technologically sophisticated exchanges in the world.”

Sprecher added that the process also focused attention on ICE’s “unfailing entrepreneurial spirit,” product diversity and ability to manage organic growth and acquisitions. “ICE stockholders recognize ICE’s ability to build its business by innovating and seizing growth opportunities, and we’ll continue to aggressively pursue this philosophy,” he said. “In doing so, we will continue to put the interests of our stockholders and customers first.”

Addressing the constantly evolving exchange marketplace, Sprecher warned that the future winners in the industry may not be the biggest or oldest players. “Success will be determined by the ability to adapt quickly to changing markets and innovate responsively in creating new products and serving customers around the globe,” he told CBOT’s members. “ICE will remain focused in these areas, and we look forward to the opportunity to work with you in the future.”

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