ACTION: Apartment Investment and Management Company (“AIV”) has announced a Special Dividend valued at $1.20. AIV Stockholders will have the ability to elect to receive the special dividend in the form of cash or additional AIV shares. The consideration which will accrue to non-electing AIV Shareholders is not known at this time. The cash or stock election must be received prior to 5:00 p.m. (EDT) on November 19, 2008.
The ex-distribution date is Thursday, October 23, 2008. The payable date is December 1, 2008. The record date is October 27, 2008.
This action will be coordinated with the Options Clearing Corporation.
CATEGORY: Cash Settlement
EQUITY SYMBOL: Apartment Investment and Management Company (“AIV”)
ONE CHICAGO SYMBOL: AIV1C changes to AIV2C; AIV1C will be re-listed on Friday, October 24.
CME FUTURES SYMBOL: AIV for re-listed AIV1C; AI3 for the AIV2C
MULTIPLIER: 100 (e.g., 1.00 equals $100.00)
EFFECTIVE DATE: Thursday, October 23, 2008
NEW DELIVERABLE PER CONTRACT: 1) 100 Apartment Investment and Management Company (“AIV”) Class A Common Shares
2) An additional amount of Apartment Investment and Management Company (“AIV”) Class A Common Shares and/or Cash valued at $1.20 which will accrue to non-electing AIV Shareholders (x 100)
3) Cash in lieu of AIV shares, if any
APPLICABLE CONTRACT MONTHS: November, December 2008 and March,June 2009
SETTLEMENT PRICES AND POSITIONS: The price for the AIV2C contract will be calculated as follows:
AIV2C = AIV + additional Apartment Investment and Management Company (“AIV”) Class A Common Shares and/or $1,2000 + Any Cash in Lieu
Please note that the valuation would apply only to the AIV2C 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.