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ISE Confirms Takeout Plan

Laurie Kulikowski

Updated from 10 a.m.

Shares of the International Securities Exchange(ISE) surged 46% after the exchange set plans to be acquired by a Deutsche Boerse affiliate.

The New York-based options exchange could be acquired for $67.50 a share, a 47% premium to Friday's closing price. A deal would combine the ISE with derivatives exchange Eurex, a venture of Deutsche Boerse and the Swiss Exchange.

"In founding ISE almost 10 years ago, we transformed the U.S. options market," said David Krell, CEO of ISE. "Our innovative products, electronic trading model, technology, market structure and entrepreneurial organization have enabled us to remain at the forefront of the options industry. Our principle strategic objective is to further grow our business both in terms of new products and new markets and in partnering with Eurex, we will be able to achieve our goal. By completing this transaction, we will be positioned to build upon ISE's successful business model and to solidify our future as an integral component of the largest transatlantic derivatives marketplace."

News comes amid furious wheeling and dealing in the exchange business. The Chicago Mercantile Exchange(CME) and the IntercontinentalExchange(ICE) are in a battle to acquire the Chicago Board of Trade(BOT). Earlier this month, the New York Stock Exchange(NYX) bought Euronext, which operates equities and derivatives exchanges across Europe.

The deal is "still subject to the negotiation of final terms and documentation as well as approval by ISE's board," ISE said in a statement.

A spokeswoman for the ISE was not immediately available for comment on Monday.

Shares of ISE were up $19.54 to $65.26 early Monday.