ACTION: On December 23, 2008, Shareholders of National City Corporation (“NCC”) voted concerning the proposed merger with The PNC Financial Services Group, Inc. (“PNC”). The merger was approved and when consummated, each existing NCC Common Share will be converted into the right to receive .0392 PNC Common Shares. Cash will be paid in lieu of fractional PNC shares.
This action will be coordinated with the Options Clearing Corporation.
CATEGORY: Cash Settlement
EQUITY SYMBOL: National City Corporation (“NCC”)
ONE CHICAGO SYMBOL: NCC1C will change to NCC2C
CME FUTURES SYMBOL: NCC2C for the NS9, NS will not be reintroduced
MULTIPLIER: 100 (e.g., 1.00 equals $100.00)
EFFECTIVE DATE: Expected on: 1/02/09
NEW DELIVERABLE PER CONTRACT: 1) 3 The PNC Financial Services Group, Inc. (“PNC”) Common Shares
2) Cash in lieu of .92 fractional PNC 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: March and June 2009
SETTLEMENT PRICES AND POSITIONS: The underlying price for the NCC2C Futures contract deliverable, expressed in term of current market value, would be calculated as follows:
NCC2C = .3 (PNC) + cash in lieu of .92 PNC shares
Please note that the valuation would apply only to the NCC2C 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.