A sprinkle of sugar for Nymex seatholders

A little goodwill goes a long way. Toss in $112 million, and it could even seal a multi-billion-dollar deal that was looking about as sure as a five-day weather forecast.

CME Group, the world’s top derivatives exchange, and NYMEX Holdings, the energy and metals market it wants to buy, responded to the complaints of NYMEX membership by tossing $138,000 more at each of the 816 Class A member seats. To top it off, NYMEX officials from the CEO on down graciously agreed to reduce their “change of control” payouts, helping shave $30 million off the transaction cost — and helping to lower the spears of members that threatened to fell the deal for months.

A sprinkle of sugar and the bluster is all but gone.

Analysts lined up Friday to agree with CME Executive Chairman Terry Duffy, who said he was “very comfortable” the takeover will now succeed.

“There’s probably still some ill will there, but this goes a long way toward healing their wounds,” Deutsche Bank North America analyst Robert Rutschow said of the rift between NYMEX management and some members, who have been saying the CME’s offer was too low. Now, CME looks all but assured to get the 75-percent support it needs from members, especially after one of the most vocal dissenters among them, Bobby Sahn, came around on Friday.

For CME, NYMEX represents round two of its bruising battle to expand in the fast-moving world of exchanges. Last year, the company forked over $4 billion more than it had originally offered for the Chicago Board of Trade, the hand of which IntercontinentalExchange also longed for at the time. The NYMEX affair, now all but a done deal, should prove softer on CME’s wallet — particularly as tumbling CME shares decrease the deal’s overall price tag. (By Jonathan Spicer)

(Photo, by Reuters of CME S&P 500 trading pit)