The Intercontinental Exchange's expected bid for UK's International Petroleum Exchange is understood to include a sweetener to incentivise the open outcry exchange to go electronic. The bid, expected to be announced on Tuesday, will include a tranche of shares that can be converted into cash, but only one year after the exchange went electronic.

A source close to IPE believes that this will clinch the deal. 'The promise of cash will certainly appeal to the locals' he said. He also added that one of IPE's largest shareholders, ED&F Man, has indicated approval of the terms of the offer.