Lucky number 11

28 January 2008

The Chicago futures giant offered an 11% premium for the New York energy exchange. That looks a bit generous. After all, Nymex uses CME s trading platform Globex, a hurdle for other bidders. And Nymex is largely a play on energy. But CME may make the deal pay off nonetheless.

This content is for Subscribers only

Context News

The Chicago Mercantile Exchange confirmed that it has engaged in preliminary discussions to acquire the New York Mercantile Exchange. The two have agreed to a 30 day exclusive negotiating period. NYMEX shareholders would receive $36 in cash and 0.1323 a share of CME common stock, representing an 11% premium to Nymex's undisturbed Friday closing price.

The CME says that it will keep Nymex's trading floor operational and will also pay the Nymex's 816 members no more than $500m.

Email a friend

Please complete the form below.

Required fields *