ATLANTA -- The IntercontinentalExchange has made an unsolicited merger offer to the CBOT, proposing to "combine the two companies in a stock-for-stock transaction that would create the world's most comprehensive derivatives exchange."

Under the terms of the proposed agreement, ICE would issue 1.42 ICE shares for each CBOT Class A common share, valued at $187.34 per CBOT share based on yesterday's closing price of ICE shares. This represents a 12.8-percent premium to CBOT's current share price, and a 39.3-percent premium to its share price on Oct. 16, 2006, the day before announcement of the CBOT's merger agreement with the Chicago Mercantile Exchange.

"This is an extremely compelling combination for Chicago Board of Trade and IntercontinentalExchange shareholders, trading members, customers, clearing firms, employees, the derivatives industry and the City of Chicago," said Jeffrey C. Sprecher, chairman and CEO of ICE. "The CBOT Board of Directors has the opportunity to achieve a transaction that offers a considerable premium to the pending CME transaction and, at the same time, secures the CBOT's position as a leading independent global derivatives complex based in Chicago. The combined company would be extremely well positioned in nearly every high-growth derivatives segment, and would have the platform to capitalize on the many emerging growth opportunities in the dynamic derivatives landscape on a global scale.

"The transaction we are proposing is clearly superior to a combination with the CME for CBOT's shareholders and other stakeholders," Sprecher said.

The combination would result in a premier global futures and over-the-counter derivatives marketplace headquartered in Chicago, the ICE release said. The combined company would have a leading presence in the major derivatives categories, including agricultural and energy products, interest rates and metals, and would be supported by integrated clearing capabilities and state-of-the-art trading technology.

IntercontinentalExchange(R) operates the leading global, electronic marketplace for trading both futures and OTC energy contracts and the leading soft commodity exchange. ICE's markets offer access to a range of contracts based on crude oil and refined products, natural gas, power and emissions, as well as soft commodities including cocoa, coffee, cotton, ethanol, orange juice, wood pulp and sugar, in addition to currency and index futures and options. ICE conducts its soft commodity futures and options markets through its U.S. regulated subsidiary, the New York Board of Trade(R). For more than a century, the NYBOT(R) has provided global markets for food, fiber and financial products. Headquartered in Atlanta, ICE also has offices in Calgary, Chicago, Houston, London, New York and Singapore.

SOURCE: IntercontinentalExchange Inc. via PR Newswire.