Merrill Lynch New Energy Technology Plc

UK emissions trading exchange owner Climate Exchange announced rapidly-increasing volumes on the European Climate Exchange, which passed the one million tonnes of carbon dioxide futures per day mark in June. The exchange has traded in excess of 10 million tonnes of carbon dioxide futures contracts since its launch in April, and continues to benefit from responses to Kyoto as well as a growing awareness among companies of their environmental footprint.

Anybody watching this one?

Broker note from KBC:
"ICE has timed its deal cleverly. Carbon trading volumes in Europe have hit a new monthly high (volumes MTD April +90% vs March) on carbon prices at last on the move. Sentiment over the US introducing cap-and-trade had just been hit. The offer is close to our fair value WITHOUT a bid premium. A counter-bidder could have paid more but has been squeezed out. There is no real alternative but to accept the offer.
ICE has made a recommended offer at 750p cash. With 53% irrevocable acceptance there is effectively no room for a counter-offer, even if another player can afford to pay more.
The Intercontinental Exchange (ICE) entered into CLE equity through a 22 June 2009 acquisition of a 4.8% stake at 644p per share. It has long been obvious that CLE would fit attractively into ICEs portfolio. The 750p cash offer is close to fair value for CLE, without a bid premium, hence the offer is not generous. 24x PER on FY2012E may seem a high rating, but CLE is strongly positioned for US cap-and-trade. Our fair value of 713p was a probability weighted average, including an allowance for trading fees to fall by 75% in Europe.
CLE paid ICE an estimated 7.3m last year in revenue share, which we expect to rise to 10.0m this year, 2010. We do not know the terms of this agreement but if an acquirer other than ICE could make a 50% net margin on the revenue share it would reduce the PER of an acquisition based on 2011 earnings by 35% we estimate. The irrevocable undertakings ensure that this will not be achieved.