Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: CBOE Holdings
So what: The London Stock Exchange Group
Now what: TMX Group shareholders will get 2.99 London Stock Exchange Group shares for each TMX Group share, giving TMX a value of C$42.68 a share at yesterday's closing price ... a paltry 6% premium. Mergers among exchanges are likely to continue as players seek clout and economies of scale, but there is not an obvious buyer for the Chicago Board Options Exchange. In addition, the CBOE, which went public last June, has been losing market share. At a P/E ratio of 52.1 times, the stock is not cheap and the opportunity for more upside from a takeover seems limited.
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Fool contributor Cindy Johnson does not own shares of any company named above. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.