CME raises bid for CBOT

NEW YORK (CNNMoney.com) -- The Chicago Mercantile Exchange sweetened its $10 billion offer for the CBOT Thursday by adding a special dividend.

CBOT shareholders will receive a one-time cash dividend of $9.14 per share, or a total of $485 million, the companies said in a joint statement.

CME (Charts), the largest U.S. futures exchange, said it eliminated a $15 million cap on out-of-pocket costs for eligible holders to have additional choices regarding their exercise rights.

In an attempt to respond to IntercontinentalExchange Inc.'s (Charts) similar proposal, the Chicago Merc also said the terms of the revised merger still included an obligation on the part of the exchange to make a $3.5 billion cash tender offer at $560 per share after the closing of the merger.

In the statement, CBOT's (Charts) board reaffirmed its preference for CME's offer over ICE's counter offer and determined its bid was not superior. ICE is pursing a hostile bid for CBOT.