Posts for Ticker ‘BOT’

CME Acquiring NYMEX

It’s official.  The CME Group Inc. (NYSE, Nasdaq: CME) is acquiring NYMEX Holdings, Inc. (NYSE: NMX).  The commodities and futures exchanges announced a definitive agreement where CME will acquire NYMEX on the terms previously announced. 

NYMEX shareholders will receive 0.1323 shares of CME Group Class A common stock and $36.00 in cash for each share of NYMEX common stock.  This equates to approximately 12.5 million shares and cash of $3.4 billion, and NYMEX will ultimately hold approximately 18.6% of the combined company.   This generates a purchase price of $100.30 before any dilution to CME shares.  NYMEX shares closed at $95.34 Friday, and the 52-week trading range is $86.61 to $148.00.

Shareholders of NYMEX can elect to receive either CME stock or cash for each share of NYMEX, although the cash and stock amounts will be determined by proration in the event that cash elections are either greater than or less than a mandatory cash component of approximately $3.4 billion.   CME may choose to increase the cash amount if NYMEX shareholders elect to receive more than $3.4 billion in cash, under certain circumstances.

The combined exchanges will now offer commodities and futures offerings in almost every major asset class and in cash, over-the-counter and regulated markets.  There were many out there that questioned whether or not the merger between the CME and the CBOT should have been allowed by regulators.  You can imagine the questions this brings up.

Jon C. Ogg
March 17, 2008

Posted on: March 17, 2008 – 7:00 am in Exchange, Mergers and Buy Outs, , , , ,

Pre-Market Stock News (July 10, 2007)

(AA) Alcoa $0.81 EPS vs $0.81e; will likely have to sweeten Alcan bid before getting any approval from Alcan.
(BOT) CBOT holders approve the CME merger offer.
(CACS) Carrier Access lowered guidance.
(CAKE) Cheesecake Factory put revenues at $373.2 million vs $371 million consensus estimate.
(CVTX) CV Therapeutics identified possible anti-diabetic characteristics in Ranexa.
(DELL) Dell has new smaller business initiative being released today.
(ENCY) Encysive announced its CFO is resigning.
(FORM) Form Factor in strategic pact with Elpida for test cost reductions.
(GMST) Gemstar TV-Guide hired UBS to explore strategic alternatives.
(HD) Home Depot issued earnings warning, but stock called flat to marginally higher.
(LXK) Lexmark issued earnings warning.
(SHLD) Sears lowered guidance to %0.98-1.24 EPS (vs. $2.12 est.) because of home appliances and other sales being weaker; increased share buyback plan.
(THRX)  Theravance announced positive results from phase II clinical study that met primary endpoints fot staph and other skin based infections.
(UNCA) Unica lowered guidance.
(WDFC) WD-40 $0.44 EPS vs $0.47e; lowered annual EPS guidance.

Jon C. Ogg
July 10, 2007

Posted on: July 10, 2007 – 7:08 am in Pre-Market Activity, , , , , , , , , , , , , , , ,

Top 10 Stock Issues Review of This Week (July 6, 2007)

Stock Tickers: CME, BOT, DFS, RIMM, AAPL, AA, RTP, AL, AMD, MOT, ALU, MPEL, GM, TM, BIDU, INTC, DELL, MSFT

If the CME (CME) and CBOT (BOT) doesn’t get approved next week, then what will it take?

What price do investors like the Discover Card (DFS) owner at?

The whole darn world in the palm of your hand: Is a cheaper iPhone already on the way? Research-in-Motion (RIMM), finally headed to China…..

Alcoa (AA), Rio Tinto (RTP), Alcan (AL)…..who is buying whom?

Cramer makes a new list of 3 CEO’s to go (AMD, MOT, ALU).

Did Melco PBL Ent. (MPEL) really find a bottom?

Detroit is shivering…..When GM (GM) loses to Toyota (TM) on trucks, what’s in its future?  Maybe they should head to China like Chrysler.

Baidu.com (BIDU) is entering a time warp back to 1999/2000 Web 1.0 valuations.  Calling a stock too high just because of valuations can be painful sometimes, but when these parachutes catch fire there is no reserve chute.

PC’s aint dead! Here’s the evidence: Intel (INTC) hits another 52-week high, and a high close on Friday.  Dell (DELL) even hit a new 52-week high Friday, although the shares didn’t hold it.  Microsoft (MSFT) Vista sales are about to be smoking hot, or so some think; if they weren’t, the Xbox 360 $1 Billion PLUS charge would have hurt the stock more than the whole $0.02 it lost the day after that announcement.

Jon C. Ogg
July 6, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.

Posted on: July 6, 2007 – 4:49 pm in The Week, , , , , , , , , , , , , , , , , ,

CME-CBOT 99.999% Done! (CME, BOT, ICE)

The Chicago Board of Trade (BOT-NYSE) and the Chicago Mercantile Echange (CME-NYSE) are THAT much closer to closing their merger.  Unless the IntercontinentalExchange Inc. (ICE-NYSE) is able to pull an unexpected Hail Mary pass, this CBOT-CME combo is going to occur.   This is one of the top 10 issues for next week as the vote is on Monday, July 9, 2007.

A further reason to believe this deal is done is that the CME has sweetened its offer for the CBOT, and CBOT holders will now own 36% of the combined exchange rather than the prior 35% stake.  Unfortunately the ICE bid came in too late, because much of the integration had already been started.  These exchanges also recently received regulatory clearance for the merger.

The other issue is that traders on the floor (who own seats and shares of the exchanges) were much more supportive of the CME-CBOT tie up than they were the ICE offer.  More than money was at stake as operating history and location were/are a factor.  ICE had challenged the ‘better deal’ issue, but the largest holder CBOT shareholder Caledonia Investments is now recommending approval and ‘encourages all other shareholders to vote in favor of the CME-CBOT merger’.   Anyhow, unless a final Hail Mary pass is made this one is going in the history books.

CBOT (BOT) shares are indicated up almost 3% at $212.00, up at a new high and up 100% from the 52-week lows.  CME shares are indicated down less than 1% at $553.25.  Interestingly enough, IntercontinentalExchange Inc. (ICE) shares are indicated up 2% at almost $155.00. The ICE offer obviously came too late, but CBOT holders have to be thankful it came.

Jon C. Ogg
July 6, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.

Posted on: July 6, 2007 – 8:20 am in Uncategorized, , ,

Top 10 Equity Events Next Week (July 9-13, 2007)

Stock Tickers: GE, AA, INFY, YUM, DNA, MAR, BOT, CME

Next week is the official launch of earnings season, although as you will tell even though the stocks are important there are not even a ‘true’ TOP 10 Earnings.

Monday, July 9
ALCOA (AA-NYSE)    $0.84…is Alcoa getting Alcan (AL), vice versa, or are they both just BAIT for someone else?

Chicago Board of Trade (BOT) has special meeting for voting on merger with Chicago Mercantile Exchange (CME).

Tuesday, July 10
Infosys Technologies Ltd. (INFY) $0.40…will Cramer still like the Indian IT outsource juggernaut?

Wednesday, July 11
Genentech (DNA) $0.71…can the biotech start trading like a biotech winner again, or is it now just another Big Pharma company with less diversification in the portfolio?  Gotta love the recent black box.
YUM! Brands (YUM) $0.36…only now about 2% under all-time high (post split).

Thursday, July 12
Marriott Int’l (MAR) $0.53…will there soon be any public hotels left?

Friday, July 13
General Electric (GE) $0.52
Citigroup still thinks a break-up is worth more, although I disagree with the core logic that this SHOULD even be considered;and given the ‘quite brief’ new recent highs and interest in megacaps we would be happy to let it ride for now.

Jon C. Ogg
July 6, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.

Posted on: July 6, 2007 – 1:31 am in Calendar, , , , , , , ,

Pre-Market Stock News (June 14, 2007)

(APPAD) AP Pharmaceuticals announces the pricing of its underwritten public offering of 21.2 million shares of its common stock at a public offering price of $1.65 per share.
(BBND) Bigband Networks announced order for its routers by Korean cable operator.
(BIDU) Baidu.com noted as positive speculative play in China by Cramer on Mad Money.
(BIOF) BioFuel priced its IPO at$10.50 per share.
(BOT) CBOT may get a sweetened bid from CME according to WSJ.
(CEO) CNOOC noted as one of the solid and stable companies in China by Cramer on Mad Money.
(CHL) China Mobile noted as one of the solid and stable companies in China by Cramer on Mad Money.
(FMCN) Focus Media noted as positive speculative play in China by Cramer on Mad Money.
(GIVN) Given Imaging receives FDA marketing clearance for PillCam ESO 2.
(HOKU) Hoku Scientific traded up over 60% after a $678 million order from Suntech power.
(IRBT) iRobot received Lockheed Martin order to be the provider of the Centralized Controller Device for the U.S. Army’s Future Combat Systems program.
(IVZ) INVESCO announced a $500 million share buyback plan.
(K) Kellogg is trying to create healthier recipes for sugary cereals.
(SNY) Sanofi-Aventis traded down 3% after an FDA review panel voted 14-0 against its diet drug over lack of safety concerns.
(SRZ) Sunrise Assisted Living received activist shareholder complaints for management change by Millennium Partners.
(SSW) Seaspan noted as one of the solid and stable companies in China by Cramer on Mad Money.
(SYT) Sygenta announced that its CEO will retire at the end of 2007.
(TASR) Taser announced an extended range electronic projectile.
(TGEN) Targeted Genetics reported Phase I/II swelling reduction in inflammatory arthritis clinical data.
(WMT) Wal-Mart reportedly has theft rising at stores.
(ZILA) Zila’s CEO has resigned effective immediately to pursue other interests.

Jon C. Ogg
June 14, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.

Posted on: June 14, 2007 – 6:56 am in Pre-Market Activity, , , , , , , , , , , , , , , , , , , ,

Earlybird Analyst Calls (June 11, 2007)

AGP raised to Hold at Jefferies.
ARAY started as Underperform at CIBC.
BE cut to Underperform at Jefferies.
BF/a raised to Overweight at JPMorgan.
BOT cut to Neutral at Credit Suisse.
CAVM started as Buy at Deutsche bank.
CPS raised to Outperform at JMP Securities.
HRB raised to Buy at UBS.
JNJ raised to Neutral at Credit Suisse.
KFS raised to Outperform at CIBC.
MKTX cut to Underweight at JPMorgan.
NKE raised to Overweight at HSBC.
NFLX cut to Underweight at JPMorgan.
RKT raised to Neutral at Credit Suisse.
UST raised to Buy at UBS.
VAR raised to Outperform at CIBC.
VRUS started as Buy at UBS.
WB raised to Outperform at FBR.
WDC raised to Buy at UBS.

Jon C. Ogg
June 11, 2007

Posted on: June 11, 2007 – 6:19 am in Analyst Calls, , , , , , , , , , , , , ,

CME Bids Higher for CBOT AND Itself

Stock Tickers: CME, BOT, ICE, ISE, NMX, NYX, NDAQ

The Chicago Mercantile Exchange (CME-NYSE) decided it was not going to let the Chicago Board of Trade (BOT-NYSE) get acquired by The IntercontinentalExchange Inc. (ICE-NYSE).   This is further proof that the "Exchange Wars" are heating up, and that the value of exchanges is still there.

The CME is revising its offer by 16% to .35 shares and CBOT holders will own approximately 34.6% of the combined company.  The board of directors will also hav3 10 of the 30 seats filled with CBOT members.

To top it off, and to act as the final "you can’t compete with this offer" the CME has announced that it will make a cash self tender offer for approximately 12% of the combined company at a fixed price of $560.00 that will commence shortly after the close of the merger.  What that does is essentially takes some of the market risk out of the CME stock since this is an all stock deal.  That is a $3.5 Billion tender.

Both companies had already spent much time and money on the merger, and this should provide a lock-up for the deal.  IntercontinentalExchange (ICE) will have a hard time being able to compete with this, although its shares are now up 1.4% at $136.71.  CBOT (BOT) shares are up 2$ at $197.95 pre-market; CME (CME) shares are up 6% at $528.50 pre-market.

This is also spilling over into the other excnages, and here are their gains pre-market: NYMEX Holdings (NMX) up 1% at $120.50, International Securities Exchange (ISE) up 0.1% at $65.10, NYSE (NYX) up 0.7% at $82.38, and NASDAQ (NDAQ) unchanged at $31.53.

Jon C. Ogg
May 11, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.

Posted on: May 11, 2007 – 8:09 am in Bait Shop, Brokerage Firms, Exchange News, Financial Stocks, Mergers and Buy Outs, , , , , , ,