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Enron Mail |
November 8, 2000
Notice No. 00-385 TO: All New York Mercantile Exchange Members FROM: Daniel Rappaport, Chairman of the Board RE: Exchange Sets Target Date for Demutualization The Exchange today set a target date of November 15 for its demutualization, which will make it the first exchange in New York to convert from not-for-profit membership structure to a for-profit structure. On October 24, the Exchange received a favorable private letter ruling from the Internal Revenue Service notifying the Exchange that there would be no tax consequences to it or any of its members as a result of its demutualization. This ruling was the final approval required for the demutualization of the Exchange to take effect. The plan was previously approved by the Securities and Exchange Commission, the Commodity Futures Trading Commission, and a 97.5% majority of the Exchange members. The Exchange has moved decisively and rapidly in its pursuit of this demutualization and the various requisite regulatory approvals. This approach is indicative of the progressive and innovative manner in which we will proceed as a for-profit corporation to reposition the Exchange as a 21st century business enterprise that will create and pursue profitable new opportunities, react rapidly and decisively in an increasingly competitive marketplace, and explore interest by outside investors. Pending certain legal notifications by November 15, the Exchange, a not-for-profit membership corporation under New York law, will be reorganized on that date as a for-profit membership corporation under Delaware law and will be renamed New York Mercantile Exchange, Inc. A new stock-holding company named NYMEX Holdings, Inc., will be formed to own all of the economic interests and most of the voting control in the for-profit membership corporation. Each existing NYMEX Division membership will be converted into one share of common stock in NYMEX Holdings, representing equity in the overall organization, and one membership in the Exchange representing trading privileges. The common stock and trading privileges will not be separable until a majority of stockholders vote to permit separate trading of the common stock and trading rights. __________________________________________________ Please click on the link below to indicate you have received this email. "http://208.206.41.61/email/email_log.cfm?useremail=sara.shackleton@enron.com& refdoc=(00-385)" Note: If you click on the above line and nothing happens, please copy the text between the quotes, open your internet browser, paste it into the web site address and press Return.
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