New York Mercantile Exchange (Nymex) shareholders have shown
"overwhelming" support in their vote to approve General
Atlantic (GA)'s investment of $160m for a 10% equity stake in
the exchange, despite a last minute rival bid from
Intercontinental Exchange (ICE).
Under the terms of the transaction, which values Nymex's
equity at $1.6bn, GA purchased an equity stake in Nymex, not
allied to any trading rights on the exchange.
The GA bid met with approval despite the fact that many in
the market expressed enthusiasm for an ICE deal as a possible
indication of a non-hostile takeover overture which could
present an answer to management and technology issues in the
energy market (see FO Week Vol 11 No 10).
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