Nymex fires opening shots for ICE

Nymex has made a $150 million cash bid for the Atlanta based Intercontinental Exchange (ICE), and would also pay $67 million for shareholders of the International Petroleum Exchange (IPE), according to a senior Nymex official. The bid, which includes distribution of cash on the ICE books, values ICE at around $317 million, 20% of its estimated value when it purchased IPE three years ago.

A source at broker PVM, which owned two seats on IPE and which therefore owns both “A” and “B” shares in ICE said the deal was unlikely to be accepted. “It’s the opening salvo,” he said. “But it is a nice confirmation that the A shares are actually worth something. Up to now it has been impossible to value the A shares – now at least someone has put $150m on the A shares.”

Under the terms of the ICE takeover of IPE, IPE shareholders would only be paid for their B shares when the IPE had made