CME Group revises terms of Nymex Holdings deal

CME Group Inc. said Friday it revised terms of its takeover of New York Mercantile Exchange operator Nymex Holdings Inc., boosting the amount it will pay out to the company's Class A members in an effort to placate critics and get the deal done.

CME Group increased its payment to $750,000 per Nymex membership from $612,000. Additionally, Nymex members will retain the right to use or lease their memberships for open outcry and electronic trading purposes.

The exchange ratio and the cash purchase price in the companies' original agreement remains unchanged, CME said, adding that the revised agreement is its final offer for the New York-based company.

The change in Class A member rights requires the affirmative vote of 75 percent of outstanding Nymex memberships. The boards of both companies and of New York Mercantile Exchange Inc. have approved the revised agreement.

CME Group, which operates Chicago Mercantile Exchange and the Chicago Board of Trade, and Nymex are the operators of the nation's two largest futures exchanges. The pair initially agreed to the sale in March, but dissident shareholders and members had threatened to vote against the deal _ the value of which has dwindled as CME's share price has declined in recent months.

Nymex shareholders will receive 0.1323 Class A shares of CME Group and $36 in cash for each share outstanding. The share price exchange rate will be set based on an average closing sale price of CME Group shares during a specified period before the merger closes.

Nymex shareholders and members and CME Group shareholders will vote on the deal Aug. 18. The companies expect to close the deal in the third quarter.

CME Group shares dropped $2.13 to $332.67 in Friday trading. Nymex shares lost 56 cents to $77.54.