Nymex Holdings in Merger Talks

Nymex Holdings Inc., parent of the New York Mercantile Exchange, said in a statement following an investor meeting Tuesday that it has held talks about a "potential business combination" and is seeking a "meaningful premium." Deutsche Bank analyst Rob Rutschow, who attended the meeting, said "management was quite frank about the possibility of a sale of Nymex." Nymex is also considering firing 100-150 people and selling its Manhattan HQ, which is worth up to $500 million. A merger "could result in cost savings of up to $250 million, as well as potential revenue synergies from better distribution in Europe," the statement said. Nymex has not named names, but NYSE Euronext, Deutsche Boerse and CME Group are considered potential suitors. Five months ago, NYSE Group bought Euronext for $14.6 billion and Deutsche Boerse agreed to buy the International Securities Exchange for $2.8 billion. NYSE Euronext CEO John Thain said in April that he is interested in exploring acquisitions that could bolster his exchange's U.S. options business. Nymex shares gained 2.6% Tuesday to close at $118.78.

Sources: Press release, Bloomberg, Reuters, Forbes, MarketWatch
Commentary: Nymex Explores Sale to CME, NYSE or Boerse -- Bloomberg • NYSE Euronext: Eyeing What's to Come
Stocks/ETFs to watch: NMX, NYX, CME. Competitors: ICE, ISE
Earnings call transcripts: Nymex Holdings Q2 2007

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