Friday's Financial Winners & Losers

Updated from 12:04 p.m. EDT

Word of a continuing merger battle in the exchange space had the main players in the drama trading mixed Friday, and that proved to be emblematic of the action in the broader financial sector.

The Chicago Mercantile Exchange (CME Quote) once again raised its offer for the Chicago Board of Trade (BOT Quote) in its attempt to outdo a competing takeover proposal from IntercontinentalExchange (ICE Quote).

CME also said its new bid has received the support of the Board of Trade's biggest shareholder, Caledonia Investments.

Shares of CME were down earlier in the day but closed up 3.4% at $574.80, and Chicago Board of Trade closed up 8.7% at $224. IntercontinentalExchange closed up 2.8% to $156.09.

Elsewhere, Travelers (TRV Quote) was up 0.2% to $54.52 after it said it has agreed to settle all asbestos coverage claims related to ACandS Inc. Travelers will contribute $449 million to a trust, but it will cede roughly $84 million to its reinsurers, for a net settlement of $365 million.

The company will fund the settlement from its existing asbestos reserves and doesn't expect any effect on earnings.

UBS (UBS Quote) rose 0.9% to $61.11 following news that Deputy CEO Marcel Rohner will replace Peter Wuffli as chief executive. Rohner has been a member of the UBS executive board since 2002, and he was named deputy chief in January 2006.

NovaStar Financial (NFI Quote) dropped earlier in the day but closed up 4.4% to $8.02 a day after a big run-up that was fueled by speculation the company could be close to being taken over. The subprime lender rose as much as 13% on Thursday.