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Advice On CBOT Merger


CHICAGO, July 2 (Reuters) — Proxy Governance, an independent proxy advisory firm, said Monday it had recommended that shareholders at CBOT Holdings, holding company for the Chicago Board of Trade, approve a merger with Chicago Mercantile Exchange Holdings.

Mercantile Exchange shareholders and CBOT shareholders and members will hold separate votes on the merger deal next Monday. CBOTs board has rejected a competing takeover proposal from IntercontinentalExchange.

We believe if this deal is voted down, CBOTs shares may fall precipitously, and we do not see the board accepting an ICE proposal, Proxy Governance said in a report.

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