[financeboyz] ChicagoBusiness.com
- From: Radhesh Mohandas <financerod@xxxxxxxxxxxx>
- To: undisclosed-recipients:;
- Date: Tue, 11 Jun 2002 03:23:04 -0400 (EDT)
Radhesh Mohandas thought you'd be interested in this ChicagoBusiness.com news
story.
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Chicago Merc files for IPO
From the Reuters Newsroom
June 10 10:16:00, 2002
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(Reuters)—The parent of the world's No. 2 futures exchange, the Chicago
Mercantile Exchange, said Monday that it has filed for an initial public
offering, the first major U.S. financial exchange to seek approval to offer its
shares to the public.
The filing by CME, which offers futures and options on livestock, currencies,
interest rates and stock indexes, marks the final stage of the exchange's tough
transition from an exchange controlled by members to one open to outside
investment.
The offering would consist of Class A shares to be offered by the parent,
Chicago Mercantile Exchange Holdings Inc., and by some of its current
shareholders. The company provided no other details about the registration
statement filed with the Securities and Exchange Commission.
Morgan Stanley would act as the book-running manager for the offering with UBS
Warburg as joint-lead manager. Salomon Smith Barney, J.P. Morgan Securities and
William Blair & Co. would act as co-managing underwriters, CME Holdings said.
The CME filing comes less than two months after the exchange's board ousted
former Chairman Scott Gordon and replaced him with independent commodities
trader Terrence Duffy. Some said the decision to replace Gordon centered on a
disagreement about how to best lead the exchange into the future and the plan
for a possible transition to electronic trade.
Although no other financial exchange in the U.S. has filed for an IPO, several
other exchanges are close behind. The Nasdaq stock market has said that it is
preparing for an IPO but that the earliest it would go public would be the
fourth quarter of this year.
CME, founded in 1898 as a member-owned institution, became the first U.S.
financial exchange to demutualize in November 2000 by becoming a for-profit
shareholder-owned corporation—the first step in laying the groundwork for
an IPO.
The New York Mercantile Exchange, or NYMEX, became the second U.S. exchange to
demutualize shortly after CME. Insiders have speculated that NYMEX will
eventually launch an IPO, but the exchange has not publicly announced plans to
do so.
The Chicago Board of Trade, the CME's crosstown rival, is also in the process
of converting to a for-profit company, but exchange officials have said they
don't know when the exchange will get the green light from federal regulators.
For news headlines throughout the business day, go to:
http://www.chicagobusiness.com
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