ACTION: On November 21, 2008, Shareholders of Barr Pharmaceuticals, Inc. (“BRL”) voted concerning the proposed merger with Teva Pharmaceutical Industries Limited (“TEVA”). The merger was approved and, when consummated, each existing BRL Common Share will be converted into the right to receive .6272 TEVA American Depositary Shares plus $39.90 cash. Cash will be paid in lieu of fractional TEVA shares.
This action will be coordinated with the Options Clearing Corporation.
CATEGORY: Cash Settlement
EQUITY SYMBOL: Pharmaceuticals, Inc. (“BRL”)
ONE CHICAGO SYMBOL: BRL1C will change to BRL2C
CME FUTURES SYMBOL: BR2 for the BRL2C; BRL for the BR1C
MULTIPLIER: 100 (e.g., 1.00 equals $100.00)
EFFECTIVE DATE: Tuesday, December 23, 2008
NEW DELIVERABLE PER CONTRACT: 1) 62 Teva Pharmaceutical Industries Limited (“TEVA”) American Depository Shares
2) $3,990 Cash (39.90 x 100)*
3) Cash in lieu of .72 TEVA ADS’s*
*The cash portion of the deliverable remains permanently fixed as part of the deliverable, and does not vary with price changes of securities also included in the deliverable
APPLICABLE CONTRACT MONTHS: January, February, March, June 2009
SETTLEMENT PRICES AND POSITIONS: The underlying price for the BRL2C Futures contract deliverable, expressed in term of current market value, would be calculated as follows:
BRL2C = .62 (TEVA) + 39.90 + cash in lieu
Please note that the valuation would apply only to the BRL2C 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.