ACTION: On January 27, 2009, Shareholders of Embarq Corporation (“EQ”) voted concerning the proposed merger with CenturyTel, Inc. (“CTL”). The merger was approved and, when consummated, each existing EQ Common Share will be converted into the right to receive 1.37 CTL Common Shares. Cash will be paid in lieu of fractional CTL shares.
This action will be coordinated with the Options Clearing Corporation.
EQUITY SYMBOL: Embarq Corporation (“EQ”)
ONE CHICAGO SYMBOL: EQ1C will change to EQ2C
CME FUTURES SYMBOL: EQ9 will change to EQ8
MULTIPLIER: 100 (e.g., 1.00 equals $100.00)
EFFECTIVE DATE: Wednesday, July 1, 2009
NEW DELIVERABLE PER CONTRACT: 1) 137 CenturyTel, Inc. (“CTL”) Common Shares
APPLICABLE CONTRACT MONTHS: July, August, September, December 2009
SETTLEMENT PRICES AND POSITIONS: The underlying price for the EQ2C Futures contract deliverable, expressed in term of current market value, would be calculated as follows:
EQ2C = 1.37(CTL)
Please note that the valuation would apply only to the EQ2C 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.