diff --git a/paramiko/config.py b/paramiko/config.py
index a31dffc..e9c1aaf 100644
--- a/paramiko/config.py
+++ b/paramiko/config.py
@@ -82,6 +82,7 @@ class SSHConfig (object):
         """
         Create a new OpenSSH config object.
         """
+        self._proxyregex = re.compile(r"^(proxycommand)\s*=*\s*(.*)", re.I)
         self._config = []
 
     def parse(self, file_obj):
@@ -97,6 +98,7 @@ class SSHConfig (object):
             if (line == '') or (line[0] == '#'):
                 continue
             if '=' in line:
+<<<<<<< HEAD
                 # Ensure ProxyCommand gets properly split
                 if line.lower().strip().startswith('proxycommand'):
                     match = proxy_re.match(line)
@@ -104,6 +106,20 @@ class SSHConfig (object):
                 else:
                     key, value = line.split('=', 1)
                     key = key.strip().lower()
+||||||| merged common ancestors
+                key, value = line.split('=', 1)
+                key = key.strip().lower()
+=======
+                if not line.lower().startswith('proxycommand'):
+                    key, value = line.split('=', 1)
+                    key = key.strip().lower()
+                else:
+                    #ProxyCommand have been specified with an equal
+                    # sign. Eat that and split in two groups.
+                    match = self._proxyregex.match(line)
+                    key = match.group(1).lower()
+                    value = match.group(2)
+>>>>>>> Implement support for parsing proxycommand.
             else:
                 # find first whitespace, and split there
                 i = 0
@@ -209,30 +225,32 @@ class SSHConfig (object):
         host = socket.gethostname().split('.')[0]
         fqdn = LazyFqdn(self)
         homedir = os.path.expanduser('~')
-        replacements = {
-            'controlpath': [
-                ('%h', config['hostname']),
-                ('%l', fqdn),
-                ('%L', host),
-                ('%n', hostname),
-                ('%p', port),
-                ('%r', remoteuser),
-                ('%u', user)
-            ],
-            'identityfile': [
-                ('~', homedir),
-                ('%d', homedir),
-                ('%h', config['hostname']),
-                ('%l', fqdn),
-                ('%u', user),
-                ('%r', remoteuser)
-            ],
-            'proxycommand': [
-                ('%h', config['hostname']),
-                ('%p', port),
-                ('%r', remoteuser),
-            ],
-        }
+        replacements = {'controlpath':
+                        [
+                            ('%h', config['hostname']),
+                            ('%l', fqdn),
+                            ('%L', host),
+                            ('%n', hostname),
+                            ('%p', port),
+                            ('%r', remoteuser),
+                            ('%u', user)
+                        ],
+                        'identityfile':
+                        [
+                            ('~', homedir),
+                            ('%d', homedir),
+                            ('%h', config['hostname']),
+                            ('%l', fqdn),
+                            ('%u', user),
+                            ('%r', remoteuser)
+                        ],
+                        'proxycommand':
+                        [
+                            ('%h', config['hostname']),
+                            ('%p', port),
+                            ('%r', remoteuser)
+                        ]
+                        }
 
         for k in config:
             if k in replacements: