Summary
CME Group Inc. (CME) announced on June 23, 2008, significant initiatives to return capital to its shareholders. The board of directors has authorized a substantial share buyback program of up to $1.1 billion of Class A common stock, which is expected to be executed over an 18-month period through various methods including open market purchases, accelerated programs, tender offers, or private negotiations. Furthermore, CME Group plans to declare a special dividend of $5.00 per common share. This dividend payment is contingent upon the successful completion of the company's pending acquisition of NYMEX Holdings, Inc. These actions signal a strong commitment by CME Group's management to enhance shareholder value and return profits generated by the company's operations.
Key Highlights
- 1CME Group's board authorized a share buyback program of up to $1.1 billion.
- 2The share repurchase program will be executed over a period of up to 18 months.
- 3Repurchases can occur through open market transactions, accelerated programs, tender offers, or private negotiations.
- 4CME Group intends to declare a special dividend of $5.00 per common share.
- 5The special dividend is conditional on the closing of the pending transaction with NYMEX Holdings, Inc.
- 6These initiatives are designed to return capital to shareholders.