ISE/Deutsche Börse: Costly option

Three years after its Eurex venture failed to establish a foothold in the US derivatives markets, Deutsche Boerse is back. It has offered to buy the International Securities Exchange, the country’s second-largest options market, for $2.8bn in cash. ISE has jumped at the $67.50 per-share offer, which represents a nearly 50% premium to its former share price. But should Deutsche Boerse’s shareholders be equally pleased? On the face of it, the deal looks in line with similar ones. The price equate...