Futures in Talks with Options

By Emre Peker

CME Group Inc. and the Chicago Board Options Exchange are in informal talks for a takeover, Crain’s said, citing people familiar with the discussions.

An acquisition would value CBOE, the largest options marketplace in the U.S., at as much as $5 billion, Crain’s reported, without naming the people. There is no formal bid and negotiations are on hold until after Oct. 21, the deadline for filing appeals in a lawsuit that must be resolved for a deal to happen, Crain’s said.

CME Group, the world’s largest futures market, would own the three biggest Chicago exchanges and gain a “dominant position” in stock options if the takeover goes through, Crain’s said. A bid may value each CBOE seat at about $4 million, a 50 percent premium, according to Crain’s.

Continue reading CME in Talks With CBOE for $5 Billion Takeover, Crain’s Says