Chicago Mercantile Exchange Holdings Inc. sent a letter to shareholders of Chicago Board Of Trade Holdings communicating the benefits of their merger agreement and discussed their position on why the unsolicited ICE/CBOT proposal is inferior to the existing CME/CBOT merger proposal.
CME executives, including CME Executive Chairman Terry Duffy and CME Chief Executive Officer Craig Donohue, at a meeting today in Chicago with CBOT members and shareholders addressed ICE's unsolicited proposal and explained CME's views as to why the ICE proposal is inferior to the CME/CBOT merger provided for in the agreement between the parties including, among other reasons:
* ICE's estimated synergies appear significantly exaggerated
* ICE's proposal poses significant execution and integration risks that could adversely affect customers and shareholders
* ICE's proposal is predicated on CBOT shareholders accepting a weaker currency
* ICE's proposal will limit CBOT's comparative future growth potential and value creation opportunities -- www.cme.com
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