Court Rejects Bid To Block NY Board Of Trade Merger

     NEW YORK (CN) – Trading permit holders on the New York Board of Trade lost their bid to block a merger between the board of trade and InterContinental Exchange.

     Permit holders claimed that the proposed merger between the board of trade and Delaware company InterContinental Exchange would deprive them of member rights to block or profit from the merger.
     But a state appellate division held that their claims for breach of contract and fraud were properly dismissed, as the board’s bylaws expressly state that permit holders are not members under the state’s Not-For-Profit Corporation Law, and do not have voting rights or merger profit-distribution rights. The bylaws only recognize equity members as members under the corporation law, the court ruled.

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