Shareholders of the International Securities Exchange have voted to approve the merger agreement of ISE and Eurex which, upon completion, will create the leading transatlantic derivatives marketplace.
At a shareholders meeting in New York, 99.7 percent of the stockholders who voted were in favour of the agreement. More than 67 percent of eligible shares were voted. Under the terms of the agreement, Eurex will pay ISE shareholders USD67.50 in cash for each ISE share held. The combination will be implemented through a merger between ISE and a subsidiary of US Exchange Holdings, a Eurex subsidiary.
'The result of the extraordinary general meeting marks an important step towards the anticipated creation of the leading transatlantic derivatives marketplace,' says Eurex chief executive Andreas Preuss. 'We are confident that this partnership will significantly strengthen our global position in the derivatives markets.
'It will enable ISE and Eurex to offer trading efficiencies and access to a global product suite to our respective exchange members. After the transaction closes, we plan to integrate the two businesses as promptly as possible to deliver additional value to our shareholders and customers.'
The affirmative shareholder vote and antitrust clearance by the US Department of Justice obtained in May satisfy two conditions to the closing of the transaction. The merger still requires approval by the Securities and Exchange Commission. Eurex and ISE expect to close the transaction in the fourth quarter as anticipated at the time of the merger announcement on April 30.
The combination of Eurex and ISE will create the leading transatlantic derivatives marketplace with a combined overall trading volume of 2.1 billion contracts in 2006. The combination will have a broad US dollar- and euro-denominated product coverage as well as significant operations and revenues in both the US and Europe.