Posts for Ticker ‘CBOT’

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, , , , ,

Cramer Sticking With DJIA Targets & The CME (CME, NYX)

On tonight’s Mad Money on CNBC, Jim Cramer talked up his DJIA target and DJIA components (there is another batch here as well) but he also said he’s backing the Chicago Mercantile Exchange (NYSE:CME).  He thinks this will benefit hugely from the increased volume and the increased volatility in futures.  This is one he thinks that can raise fees because they are so large in market share now that the CME/CBOT merger went through.  He even said this may be a secular growth story and even thinks the stock is cheap.  The company now has accelerating revenue growth for growth managers, and he thinks estimates could be too low.

Jon C. Ogg
August 2, 2007

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

Posted on: August 2, 2007 – 5:50 pm in Cramer, , , , ,

Media Digest 7/10/2007 Reuters, WSJ, NYTimes, FT, Barron’s

According to Reuters, the CME (CME) purchase of the CBOT (CBOT) was approved by shareholders.

Reuters writes that BHP Billiton (BHP) is looking for a partner to make a bid for Alcoa (AA).

Reuters reports that Ford (F) plans to increase its output in Russia.

Reuters also writes that shares in Sprint (S) rose on rumors of a potential buy-out offer from Korea’s SK Telecom.

The Wall Street Journal writes that the New York Stock Exchange is looking into trades in ABN Amro (ABN) which occured around the time that Barclays (BCS) made a bid for the bank.

The Wall Street Journal writes that Gemstar-TV Guide (GMST) has put itself on the market.

The Wall Street Journal reports that Ford (F) and GM (GM) will extend incentives on some of their vehicles to clear out inventories.

The New York Times writes that Danone (DA) will spend $16.8 billion to buy Royal Numico.

The FT reports that the IPO of EMC (EMC) unit VMWare could raise $1.1 billion.

Barron’s writes that several solar energy stocks including Hoku (HOKU) rose sharply on news of new customers.

Douglas A. McIntyre

Posted on: July 10, 2007 – 3:09 am in Uncategorized, , , , , , , , , , , , ,

Media Digest 7/5/2007 Reuters, WSJ, NYTimes, FT, Barron’s

According to Reuters, Australia Australian fund manager Caledonia said it would vote against Chicago Merch’s (CME) proposal to buy CBOT (CBOT) The fund own over 6% off the exchange.

Reuters writes that GE (GE) see its growth in stable emerging markets growing faster than the GDP in those countries.

The Wall Street Journal reports that Blackstone’s (BX) purchase of Hilton (HLT) raises the question of whether Marriott (MAR) and Starwood (HOT) are also takeover candidates.

The Wall Street Jounal reports that the Justice Department has started a probe of the SAP (SAP) theft of certain Oracle (ORCL) documents.

The Wall Street Journal also reports that Boston Scientifc (BSX) is trying to make a comeback ahead of a portential downgrade of its bonds, but bears says that problems with its stent and other businesses have cut cashflow well below projections.

The Wall Street Journal also writes that exchanges between Alcoa (AA) and Alcan (AL) signal pressure on the US company to buy its Canadian rival.

The Wall Street Journal also reports tha Conoco Phillips (COP) expects a strong second quarter.

The New York Times reports that album sales continue to drop as digital music sales rise sharply.

The NYT writes that Naver.com is the leading search engine in Korea. Taking advantage of cultural differences, it outperfoms Google (GOOG) by a wide margin.

The FT reports that IPO offerings from Chinese companies may outpace those from any other country in the world.

FT reports that China Unicom (CHU) and China Mobile (CHL) are using free beer to help sign up subscribers.

FT reports that Telefónica’s O2 mobile phone business is set to become the Apple (AAPL) iPhone provider for the UK.

Barron’s reports that new management at Liz Claiborne may help reverse the fall of its shares.

Douglas A. McIntyre

Posted on: July 5, 2007 – 3:12 am in Uncategorized, , , , , , , , , , , , , , ,