NEW YORK (Reuters) - CME Group Inc , the world's largest derivatives exchange, is in talks to take over the Chicago Board Options Exchange in a deal that would value the largest U.S. options market at up to $5 billion, according to Crain's Chicago Business.
"Acting through intermediaries, officials at the exchanges have held informal discussions over the past month about a combination," but no formal bid is on the table, Crain's cited sources in a report on Sunday.
Further talks are on hold until after Wednesday, the report said. A deal of that size would mean a big payday for CBOE members, with each CBOE seat valued at about $4 million, about 50 percent more than they fetch today, the report said.
The $5 billion price tag would value CBOE at about 20 times its expected annual earnings after it converts to a shares-based private company from a member-owned exchange, the report said.
(Reporting by Franklin Paul; editing by Gunna Dickson)
