ACTION: On August 18, 2009, Shareholders of Centex Corporation (“CTX”) voted concerning the proposed merger with Pulte Homes, Inc. (“PHM”). The merger was approved and consummated, so each existing CTX Common Share will be converted into the right to receive .975 PHM Common Shares. Cash will be paid in lieu of fractional PHM shares.
This action will be coordinated with the Options Clearing Corporation.
EQUITY SYMBOL: Centex Corporation (“CTX”)
ONE CHICAGO SYMBOL: CTX1C will change to CTX2C; CTX1C will not be reintroduced
CME FUTURES SYMBOL: CTX will change to CT6
MULTIPLIER: 100 (e.g., 1.00 equals $100.00)
EFFECTIVE DATE: Wednesday, August 19, 2009
NEW DELIVERABLE PER CONTRACT: 1) 97 Pulte Homes, Inc. (“PHM”) Common Shares
2) Cash in lieu of .5 fractional PHM Shares
APPLICABLE CONTRACT MONTHS: August, September, October, December 2009
SETTLEMENT PRICES AND POSITIONS: The underlying price for the CTX2C Futures contract deliverable, expressed in term of current market value, would be calculated as follows:
CTX2C = .97 (PHM) + Cash in lieu
Please note that the valuation would apply only to the CTX2C 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.