Nymex Explores Sale to CME, NYSE or Boerse -- Bloomberg

The New York Mercantile Exchange (Nymex) is considering selling itself to either the CME, NYSE Euronext, or Deutsche Boerse, Bloomberg reports. Two people involved in the discussions say a price of $155/share (11% above Thursday's close of $139.80) is being discussed. Top Nymex executives have met with all three suitors, and its board is aware of the discussions, they said. The exchange has not yet hired investment bankers to assist with the sale, but the process could gain momentum after July 9, when CBOT shareholders vote on a proposed CME merger. Nymex shares are up 12% this week on buyout speculation, and on the tails of the Justice Department's June 11 decision to allow the CME/CBOT merger to proceed. Analyst Craig Pirrong said he expected the NYSE might get aggressive with its bid: "NYSE has made it very clear they want to expand into derivatives... It may be that NYSE feels like it's going to be punished if it doesn't do a deal." All parties declined to comment.

Sources: Bloomberg
Commentary: Who Will Acquire CBOT Holdings? • Possibility of NYMEX-Optionable Takeover Continues Pushing Shares Higher • Nymex: Beware of Slippage -- Barron's
Stocks/ETFs to watch: Nymex Holdings Inc. (NMX), Chicago Mercantile Exchange Holdings (CME), CBOT Holdings Inc. (BOT). Competitors: IntercontinentalExchange Inc. (ICE), International Securities Exchange Inc. (ISE)

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