Chicago Merc Shares Leap on Merger Talk

Speculation of a merger between the two biggest U.S. futures exchanges vaulted Chicago Mercantile Exchange shares to an all-time high Wednesday after its longtime rival, the Chicago Board of Trade, acknowledged it was considering unspecified outside offers.

Rumors of the possible cross-town pairing had circulated for months but appeared to gain credence after the Board of Trade’s parent company issued a terse statement Tuesday that it had received “unsolicited, non-binding expressions of interest in a business combination.”

CBOT Holdings Inc., which has been poised to take the exchange public, said its board of directors was considering the proposals and cited the possibility of an “acquisition, sale or other transaction.”

Shares in Chicago Mercantile Exchange Holdings Inc. rocketed 13%, or $34.95, to $305.95, nearly nine times the $35 price at which the company went public in 2002. The stock has been buoyed by strong earnings gains as futures trading has soared.

Both exchanges were tight-lipped about the rumors Wednesday. Spokeswoman Anita Liskey said the Merc did not comment on speculation regarding potential merger and acquisition activity; Board of Trade spokeswoman Maria Gemskie declined to elaborate on Tuesday’s statement.