Cataldo Capozza Announces Schedule for Completion of Expedited Court Proceedings.YARMOUTH, Maine -- Cataldo J. Capozza, an original member and shareholder of NYMEX See New York Mercantile Exchange. NYMEX See New York Mercantile Exchange (NYM). Holdings, Inc. ("NYMEX") (NYSE NYSE See: New York Stock Exchange : NMX NMX Normas Mexicanas (non-mandatory Mexican standard) NMX Network Modular Extension ), who filed a class action on March 17, 2008, in the Delaware Chancery Court on behalf of all NYMEX shareholders, announced today that he has hired Cindy Doxsey as Chief Executive Assistant to review court proceedings. Capozza said, "The recent announcement by CME CME See: Chicago Mercantile Exchange CME See Chicago Mercantile Exchange (CME). and NYMEX of the revised merger agreement and the shareholder vote on August 18, 2008 offers nothing new to NYMEX shareholders since it maintains the original exchange ratio and cash consideration per share offered in January 2008. It also requires NYMEX, not CME, to pay NYMEX members $750 million from company assets. NYMEX is buying seat rights for CME with its shareholder cash reserves Cash reserves See: Cash investments cash reserves Investment funds that are held in short-term assets such as Treasury bills and certificates of deposit until more permanent investment opportunities are available. . CME should be paying this expense, not the NYMEX shareholders. If NYMEX has extra cash available, it should pay a special dividend to NYMEX shareholders to make up for billions of dollars lost in this deal." In August 2007, NYMEX Chairman Richard Schaeffer valued NYMEX at $14 billion. Five months later, in January 2008, he negotiated the sale to CME valuing NYMEX at $11 billion. Today, despite record results reported by NYMEX, the sale deal is worth only $7 billion because of the sharp decline in the price of CME stock. "With new management in place, I am confident that NYMEX would have much greater value as a stand-alone company stand-alone company An independent operating firm. For example, a large diversified firm may consider spinning off a subsidiary because, as a stand-alone company, the subsidiary would command a higher price-earnings ratio than the parent. ," Capozza said. |
|
||||||||||||||

Printer friendly
Cite/link
Email
Feedback
Reader Opinion