NYMEX Holdings: Deal or No Deal?
Posted by Thomas Catino
That's certainly the question on the minds of investors tracking the exchange sector. NYMEX Holdings (NYSE: NMX) has been frequently mentioned as a takeover candidate in the story of NYSE Euronext's (NYSE: NYX) quest to expand into derivatives. And today, a NYMEX acquisition looks closer to becoming a reality. According to the New York Post, the company is considering a sale of its Manhattan headquarters at a price tag of nearly $700 million, retaining Newmark Knight Frank to sell the 15-floor tower at the World Financial Center, in what definitely would be considered a prelude to a merger. Sources said that the energy exchange is involved in "serious merger negotiations" with neighboring New York Stock Exchange that could result in a takeover of NYMEX in the next two months.
NYMEX shares gapped higher on the news this morning and are holding on to their gains, up $5.82, or 4.79%, to $127.28, though the volume is rather tepid with about 1.37 million shares traded compared to daily average volume of 1.79 million shares. There has been some speculative dabbling in well out of the money NYMEX August call options with a $150 strike price; 1,986 contracts have traded, more than its open interest, but nothing outrageous to suggest a deal is imminent.
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