Earnings Preview of the Financial Exchanges

Wednesday, January 30, 2008

Earnings Preview of the Financial Exchanges

The financial exchanges (CME, ICE, NMX, NYX, NDAQ) will report Q4 earnings over the next week, with ICE and NDAQ due out tomorrow before the open, NMX out on Friday morning, and CME & NYX set for next Tuesday. The big news in the group this week was Monday's announcement that CME and NMX are in preliminary talks for CME to acquire NMX. The cash and stock deal is worth around $116 per NMX share (using current CME stock price), representing a valuation multiple of about 32x 2008 EPS ests. NMX had long been rumored as a takeover candidate, and consolidation is nothing new to the space, with CME previously acquiring BOT, NYX announcing the acquisition of AMEX earlier this month, NDAQ/Bourse Dubai buying Nordic exchange OMX, and many other deals and partnerships taking place in the recent past..

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