Cataldo J. Capozza, an original member and shareholder of NYMEX Holding,
Inc. (“NYMEX”)
(NYSE:NMX), who filed a class action on March 17, 2008, in the Delaware
Chancery Court on behalf of all NYMEX shareholders, announced today his
decision not to seek to enjoin the upcoming shareholder vote on the
proposed sale of NYMEX to CME Group, Inc. (“CME”)
after the filing by CME of the Definitive Additional Materials (“Proxy
Supplement”) on August 7, 2008, in connection
with the proposed sale. “I am firmly in favor
of informed shareholder choice, and the additional disclosures CME has
made, which incorporated many of my own proposals, give shareholders
more meaningful information to cast their vote. I decided not to seek an
injunction because CME and NYMEX agreed to make disclosures I said were
missing from the proxy statement.” Capozza
also announced his decision not to challenge, by preliminary injunction,
the validity or enforceability of the Waiver and Release that Class A
Members are required to sign to collect payment for their rights under
Exchange Bylaw 311(G). Capozza intends to challenge the validity and
enforceability of the Waiver and Release in court.
“My action should not be construed as an
endorsement of the terms of this deal,”
Capozza said. “To the contrary,”
he added, “we will continue our effort in the
Delaware Chancery Court to contest the adequacy of the process leading
up to the proposed sale and the fairness of the price to be paid by CME
if the sale is approved by the shareholders and the members of the
Exchange.”
According to Capozza, “We cleared an
important hurdle today, but we have not reached the finish line. I still
believe NYMEX has considerable stand-alone value and is worth more to
CME than CME is paying. Our Chairman, Richie Schaeffer, valued NYMEX at
$14 billion just one year ago. NYSE Euronext was prepared to offer $142
a share at the time. Since then, NYMEX has posted quarter after quarter
of record results. Unfortunately, because of how Richie Schaeffer
negotiated the deal, the value to NYMEX shareholders has fallen by about
50 percent. Meanwhile, Richie Schaeffer, Jim Newsome, and the other
senior managers of NYMEX stand to pocket $65 million in severance
payments. They have put us in a position where we have to choose between
bad management and a bad deal. In my opinion, selling the company in a
bear market is too high a price to pay for bad management.”
Capozza added, “If the shareholders approve
the sale, we will seek damages to compensate the shareholders for
billions of dollars NYMEX management left on the table. However, if the
shareholders vote down the sale (and vote AGAINST this deal), our
efforts will be directed to replacing management, developing a new
trading platform that will be second to none while we maintain our
business relationship with CME, and making sure that NYMEX regains its
position as the world’s best commodities
marketplace. That would be a much better use of the $65 million that
Richie Schaeffer, Jim Newsome, and the rest of our ‘leadership’
would be paid.”
The Proxy Supplement contains important information about the history of
the merger and the way it was negotiated that was missing from the proxy
statement filed by CME on July 21, 2008. Capozza urges all NYMEX
shareholders to read the Proxy Supplement carefully and to vote only
after they have considered all relevant information. Shareholders who
have already voted may change their votes any time before August 18,
2008.
Cataldo J. Capozza, 239-261-2169