CHICAGO, Aug. 20 /PRNewswire-FirstCall/ -- CME Group (Nasdaq: CME) today
announced that it, along with Class representatives, had reached a definitive
settlement agreement with CBOE related to CME Group, Inc., et al. v. Chicago
Board Options Exchange, Inc. et al commonly known as the Exercise Right
lawsuit.
Under the settlement terms, eligible settlement class members will share
in CBOE equity and will also receive a cash payment:
-- Equity will be distributed to eligible settlement class members equal
to 18 percent of the equity to be distributed to them and CBOE members in
CBOE's demutualization.
-- Cash payments will be made to eligible settlement class members in the
aggregate amount of $300 million.
As part of the agreement, the appeal of the SEC order will be withdrawn
and the parties have agreed that upon final approval of the settlement by the
court there will no longer be any persons eligible to become CBOE members
under the Exercise Right. All claims that were or could have been brought in
the Delaware court will be dismissed. As a result, CBOE will be free to
demutualize and has agreed to take reasonable steps to demutualize as soon as
commercially possible.
The settlement terms are subject to approval of CBOE members as well as
the Delaware Chancery Court. Specific details regarding the terms of the
settlement are set forth in the Stipulation of Settlement which will be
available on the CME's and the CBOT's websites. Also, a Class Notice
describing the settlement terms will be mailed to potential class members
shortly.
CME Group (http://www.cmegroup.com) is the world's largest and most
diverse derivatives exchange. Formed by the 2007 merger of the Chicago
Mercantile Exchange (CME) and the Chicago Board of Trade (CBOT), CME Group
serves the risk management needs of customers around the globe. As an
international marketplace, CME Group brings buyers and sellers together on the
CME Globex electronic trading platform and on its trading floors. CME Group
offers the widest range of benchmark products available across all major asset
classes, including futures and options based on interest rates, equity
indexes, foreign exchange, agricultural commodities, and alternative
investment products such as weather and real estate. CME Group is listed on
NASDAQ under the symbol "CME."
Forward-Looking Statements
This press release may contain forward-looking information regarding
Chicago Mercantile Exchange Holdings Inc. and CBOT Holdings, Inc. and the
combined company after the completion of the merger that are intended to be
covered by the safe harbor for "forward-looking statements" provided by the
Private Securities Litigation Reform Act of 1995. These statements include,
but are not limited to, the benefits of the business combination transaction
involving CME and CBOT, including future financial and operating results, the
new company's plans, objectives, expectations and intentions and other
statements that are not historical facts. Such statements are based on
current beliefs, expectations, forecasts and assumptions of CME and CBOT's
management which are subject to risks and uncertainties which could cause
actual outcomes and result to differ materially from these statements. Other
risks and uncertainties relating to the proposed transaction include, but are
not limited to the satisfaction of conditions to closing; including receipt of
shareholder, member, antitrust, regulatory and other approvals on the proposed
terms; the proposed transaction may not be consummated on the proposed terms;
uncertainty of the expected financial performance of CME following completion
of the proposed transaction; CME may not be able to achieve the expected cost
savings, synergies and other strategic benefits as a result of the proposed
transaction; the integration of CBOT with CME's operations may not be
successful or may be materially delayed or may be more costly or difficult
than expected; general industry and market conditions; general domestic and
international economic conditions; and governmental laws and regulations
affecting domestic and foreign operations.
For more information regarding other related risks, see Item 1A of CME's
Annual Report on Form 10-K for the fiscal year ended December 31, 2006. Copies
of said 10-K is available online at http://www.sec.gov or on request from the
CME. You should not place undue reliance on forward-looking statements, which
speak only as of the date of this press release. Except for any obligation to
disclose material information under the Federal securities laws, CME
undertakes no obligation to release publicly any revisions to any forward-
looking statements to reflect events or circumstances after the date of this
press release.
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