Friday morning, June 1, Chicago Mercantile Exchange (CME) Chief Executive Officer Craig Donohue spoke on a Deutsche Bank CEO conference call. He answered questions from reporters about the CME/Chicago Board of Trade (CBOT) proposed merger, and it got interesting.
One reporter who called in told Donahue that while he kept saying the CME’s deal was superior to the InterContinental Exchange’s (ICE) deal and that the CME was a superior company to the ICE, that didn’t answer the question on most CBOT members’ minds, “Are you going to offer more money?” Because, the reporter continued, “many members think you’re low-balling them.”
Donahue responded, “These people are traders, and they are playing the game, but I’m confident there is tremendous support for the deal.”
The reporter also told Donohue that if the CBOT were to vote tomorrow, the votes would not go in favor of the CME deal.
“I don’t agree with that assessment,” Donohue replied.
It’s clear that nothing is clear. Will the CME up the offer? If they don’t, are there not enough of what Donohue calls a “vocal minority,” who oppose the deal to vote against it? As the voting day draws closer, Futures wants to know what you think, especially if you’re a CBOT member!
(by Yesenia Salcedo)