Deutsche Börse looking to marry Eurex with ISE

Deutsche Börse is in advanced negotiations with the New York-based International Securities Exchange (ISE), which could lead to the Frankfurt exchange taking over ISE via its Eurex derivatives arm.

Eurex is a joint venture between Deutsche Börse and the Zurich-based Swiss Exchange. The deal would value the ISE at $2.8 billion in cash, or $67.50 a share. Although Deutsche Börse’s executive has recommended the offer to its supervisory board, final terms and conditions have yet to be ironed out. Any deal would also be subject to shareholder and regulatory approval.

Suggestions of another transatlantic deal follow the finalisation of the merger between NYSE Group and European derivatives exchange Euronext in April. Deutsche Börse had also bid for Euronext, but pulled out of the running in November 2006.

A majority stake in Eurex’s former US subsidiary, now known as the US Futures Exchange, was sold to Man Group in July 2006.

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