Mumbai: Chicago Mercantile Exchange Holdings (CME) has increased its merger offer for CBOT Holdings Inc. to $11.5 billion, slightly above InterContinental Exchanges''s (ICE) current offer of $11.4 billion.

Shareholders of CBOT Holdings would receive 0.375 shares of CME Holdings common stock for each share of CBOT, up from 0.350 shares in the earlier agreement.

This would push CBOT shareholders'' stake in the combined company to about 36 per cent.

"This is our best and final offer, and we will not change it," CME chief executive Craig Donohue said on a conference call with analysts, ahead of a CBOT shareholder vote early next week.

CME said Caledonia Investments, CBOT Holdings'' biggest shareholder, which earlier had said the Merc''s bid was too low and planned to vote against the merger, supported the new bid.

Australia-based Caledonia , which owns about 6.5 per cent of CBOT Holding, backee the offer, saying it would encourage other shareholders to vote for the merger.

The new CME Group would have a market share of more than 85 per cent of US futures and options-on-futures trading, including almost 100 per cent in the interest rate and stock index segments.

"We will be a force to be reckoned with," said CME executive chairman Terry Duffy, said of the merger move. US justice department has approved the merger plan.

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