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Monday, April 30, 2007

Exchanges In Play With ISE Bid

I have written that the Nasdaq would go after electronic options exchange ISE (ISE). Today Deutsche Boerse beat the Nasdaq to the prize and made a $2.8 billion bid for the ISE. I continue to believe that you can own just about any public exchange. NYSE Euronext (NYX) just completed their merger and I wouldn't expect them to do a deal anytime soon. ICE & the CME are currently bidding for the CBOT (BOT). If you have some extra dough laying around (roughly $2.4 million) I would look into buying a seat on the CBOE in anticipation of an IPO or a bid from the Nasdaq (NDAQ). In the meantime I continue to remain long ICE and NMX.

ISE: Bid for 31*2008E=$67.50
NDAQ: 31*(1.73E)=$53.63 vs. Current Price $32.56
ICE: 31*(5.10E)=$158 vs. Current Price $127
NMX: 31*(3.76)=$113.77 vs. Current Price $129.71

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