CME Readies Nymex Bid

Discussion in 'Wall St. News' started by rubibond007, Dec 17, 2005.

  1. CME Readies Nymex Bid
    Sources say the largest futures market in the world will bid $200 million for a 10 percent stake in the Nymex


    The Chicago Mercantile Exchange, the largest futures market in the world, is gearing up to make an offer for a slice of the New York Mercantile Exchange that could top an earlier deal struck with private equity firm General Atlantic, according to sources familiar with the matter.

    Details of the bid are still being negotiated within the CME, but sources said the Chicago exchange is planning to approach the Nymex within the next two days with an offer to buy a 10 percent stake for as much as $200 million.

    Should the CME submit a formal bid that is significantly higher than the $135 million General Atlantic agreed to pay back in November, the Nymex board will likely come under intense pressure to seriously consider the offer. The Nymex board has approved the deal with General Atlantic, but regulators and the exchange's 816 members have yet to approve it.