Original Nymex member may try to replace CEO, expects court to rule against sale to CME

By Lisa Kerner

Charlotte, N.C., June 3 - Nymex Holdings, Inc. original member and shareholder Cataldo J. Capozza may try to replace company director Richard Schaeffer as well as chairman and chief executive officer James Newsome in the belief that fellow shareholders have lost faith in the pair.

According to Cataldo, Schaeffer and Newsome proposed a sale of the company to CME Group Inc. in order to share in a $60 million windfall payout upon a CME takeover.

In a statement released on Tuesday, Capozza said he expects a favorable ruling in the class action suit filed on behalf of all Nymex shareholders in Delaware challenging the proposed sale of the company to CME.

Capozza has objected to CME's bid to acquire Nymex since the proposed transaction was first announced in January.

While Nymex originally bid $119 per share in cash and CME stock, or more than $11 billion for the company, the offer price has dropped more than 20% as CME stock has declined, Capozza noted.

"If the CME offer doesn't fairly compensate Nymex shareholders for their valuable investment, it will be rejected and we'll remain an independent company," Capozza said.

Capozza added that he believes Nymex shares will once again trade above $120 per share if CME walks away or if the members and shareholders vote it down.

Nymex Holdings is the parent company of the New York Mercantile Exchange, a physical commodities exchange.

CME Group is a Chicago-based financial exchange. It was formed by the 2007 merger of the Chicago Mercantile Exchange and the Chicago Board of Trade.

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