ACTION: On April 8, 2009, Shareholders of Provident Bankshares Corporation (“PBKS”) voted concerning the proposed merger with M&T Bank Corporation (“MTB”). The merger was approved and subsequently consummated on May 22, 2009. As a result, each existing PBKS Common Share will be converted into the right to receive .171625 MTB Common Shares. Cash will be paid in lieu of fractional MTB shares.
This action will be coordinated with the Options Clearing Corporation.
EQUITY SYMBOL: Provident Bankshares Corporation (“PBKS”)
ONE CHICAGO SYMBOL: PBKS1C will change to PBKS2C
CME FUTURES SYMBOL: PBK will change to PB9
MULTIPLIER: 100 (e.g., 1.00 equals $100.00)
EFFECTIVE DATE: Wednesday, May 27, 2009
NEW DELIVERABLE PER CONTRACT: 1) 17 M&T Bank Corporation (“MTB”) Common Shares
2) Cash in lieu of .1625 fractional MTB shares*
*The cash portion of the deliverable remains permanently fixed as part of the option deliverable, and does not vary with price changes of securities also included in the deliverable.
APPLICABLE CONTRACT MONTHS: June, July, September, December 2009
SETTLEMENT PRICES AND POSITIONS: The underlying price for the PBKS2C Futures contract deliverable, expressed in term of current market value, would be calculated as follows:
PBKS2C = .17 (MTB) + cash in lieu
Please note that the valuation would apply only to the PBKS2C deliverable in terms of current market value of the deliverable securities. The resulting price would not be equivalent to the daily settlement price of a futures contract month, whose determination would include cost of money carrying charges, adjustment for dividends, and other factors.
NOTES: The forecasted effect of the upcoming corporate event on each clearing firms’ positions can be viewed in infopac in the Corporate Event Initial Forecast Report (ONE712), the Corporate Event Final Forecast Report (ONE713), and the Corporate Event Forecast Audit Report (CPDBU710).
If you have any questions regarding the information provided in the document, please call CME Clearing risk management hotline at (312) 648-3888.