CBOE Shares Surge After Report of $16 Billion Approach by CME

CBOE Global Markets Inc., owner of the VIX volatility indexes, surged the most in more than eight weeks on a report that CME Group Inc. had proposed a $16 billion acquisition.

CME, the world’s largest futures-exchange operator, offered 0.75 of its own shares for every CBOE share, the Financial Times reported, citing three people familiar with the talks. That would value CBOE shares at about $150 each, according to the report, or roughly 21% higher than Tuesday’s closing price. 

CBOE advanced 5.2% to $130.54 at 1:58 p.m. in New York, the biggest gain on an intraday basis since June 21. CME fell 2.8%.

CME spokeswoman Laurie Bischel declined to comment on the Financial Times report. 

“As a matter of policy, CBOE does not comment on market rumors or speculation,” Angela Tu, a CBOE spokeswoman, said in an emailed statement. 

An acquisition by CME would be one of the final pieces in the consolidation of U.S. exchanges. The buyouts started in 2007, when CME acquired its crosstown rival, the Chicago Board of Trade, for $9.6 billion, and then followed with the $9.8 billion purchase of Nymex Holdings Inc. a year later. In 2013, Intercontinental Exchange Inc. bought NYSE Euronext for $10.3 billion, giving it a valuable European derivatives franchise and the iconic New York Stock Exchange.

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