McGraw-Hill Cos and CME Group Inc are in talks to combine their stock-market index businesses, uniting the Standard & Poor’s (S&P) 500 Index and the Dow Jones Industrial Average, a person with knowledge of the matter said.
In the deal under discussion, New York-based McGraw-Hill would end up with about a 75 percent stake in the combined venture, said the person, who spoke on condition of anonymity because the talks are private. Chicago-based CME would hold most of the rest and News Corp, a minority owner of the Dow Jones index business, would get a small stake, the person said.
McGraw-Hill and CME may be weeks away from reaching an agreement, the person said. The companies have been discussing a combination for about a year and recently brought News Corp into the talks, the person said.
Laurie Bischel, a spokeswoman at CME Group, said in an e-mail that the company doesn’t comment on rumor or speculation. Patti Rockenwagner, a spokeswoman for McGraw-Hill, declined to comment.
The Wall Street Journal reported the story on Thursday.
S&P’s index business is worth about US$1.7 billion, Sloan Bohlen, an analyst at Goldman Sachs Group Inc in New York, said in a Sept. 1 report. The company has grown to more than 100,000 indexes in markets globally from its index of the 500 largest US companies started in 1957.
McGraw-Hill said on Sept. 12 it would split into two companies, separating its textbook publishing business from its other media and finance businesses, which will be renamed McGraw-Hill Markets, following a strategic review that began last year. Shareholders Jana Partners LLC and Ontario Teachers’ Pension Plan proposed in August that the company break into four businesses, with the S&P index business as a standalone company.
CME Group became a publicly traded company in 2002 and merged with the Chicago Board of Trade in 2007.
Intel Corp chief executive officer Lip-Bu Tan (陳立武) is expected to meet with Taiwanese suppliers next month in conjunction with the opening of the Computex Taipei trade show, supply chain sources said on Monday. The visit, the first for Tan to Taiwan since assuming his new post last month, would be aimed at enhancing Intel’s ties with suppliers in Taiwan as he attempts to help turn around the struggling US chipmaker, the sources said. Tan is to hold a banquet to celebrate Intel’s 40-year presence in Taiwan before Computex opens on May 20 and invite dozens of Taiwanese suppliers to exchange views
Application-specific integrated circuit designer Faraday Technology Corp (智原) yesterday said that although revenue this quarter would decline 30 percent from last quarter, it retained its full-year forecast of revenue growth of 100 percent. The company attributed the quarterly drop to a slowdown in customers’ production of chips using Faraday’s advanced packaging technology. The company is still confident about its revenue growth this year, given its strong “design-win” — or the projects it won to help customers design their chips, Faraday president Steve Wang (王國雍) told an online earnings conference. “The design-win this year is better than we expected. We believe we will win
Quanta Computer Inc (廣達) chairman Barry Lam (林百里) is expected to share his views about the artificial intelligence (AI) industry’s prospects during his speech at the company’s 37th anniversary ceremony, as AI servers have become a new growth engine for the equipment manufacturing service provider. Lam’s speech is much anticipated, as Quanta has risen as one of the world’s major AI server suppliers. The company reported a 30 percent year-on-year growth in consolidated revenue to NT$1.41 trillion (US$43.35 billion) last year, thanks to fast-growing demand for servers, especially those with AI capabilities. The company told investors in November last year that
Power supply and electronic components maker Delta Electronics Inc (台達電) yesterday said it plans to ship its new 1 megawatt charging systems for electric trucks and buses in the first half of next year at the earliest. The new charging piles, which deliver up to 1 megawatt of charging power, are designed for heavy-duty electric vehicles, and support a maximum current of 1,500 amperes and output of 1,250 volts, Delta said in a news release. “If everything goes smoothly, we could begin shipping those new charging systems as early as in the first half of next year,” a company official said. The new
RSS