Wednesday, March 19, 2008

Turning Pennies into dollars: (NYSE: DAL), (NYSE: CME), (NYSE: NMX), (NYSE: IP), (NYSE: WY)

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Mar. 17, 2008 -- Delta Air Lines (NYSE: DAL) and Hawaiian Airlines announced a new partnership giving SkyMiles and HawaiianMiles members more mileage-earning and award travel opportunities on the two carriers. The new agreement enables members of HawaiianMiles to earn and redeem miles on all Delta flights systemwide. Delta's SkyMiles members may now earn and redeem miles for travel on all interisland flights operated by Hawaiian within the State of Hawaii. Hawaiian provides approximately 100 flights daily connecting Honolulu, Maui, Kauai, and Hilo and Kona on the Big Island of Hawaii.

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Mar. 17, 2008 -- CME Group Inc. (NYSE: CME) and NYMEX Holdings, Inc. (NYSE: NMX) announced they signed a definitive agreement under which CME Group will acquire NYMEX Holdings (NYMEX), the parent company of New York Mercantile Exchange, Inc. on the terms previously announced. The transaction joins the complementary product offerings of two of the industry's leading and most dynamic exchanges. This combination will further diversify the company's revenues, with products in every major asset class. It also will better position the company to compete globally with other cash, over-the-counter (OTC) and regulated markets and participate in the fast-growing global energy market. The transaction also is expected to deliver significant customer benefits through clearing capital efficiencies related to equity holding requirements, portfolio margining and security deposits for joint clearing members. Additional benefits will include harmonized trading and administrative technology systems, building on the existing CME Group/NYMEX exclusive electronic trading agreement.

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Mar. 17, 2008 -- International Paper (NYSE: IP) signed an agreement with Weyerhaeuser (NYSE: WY) to purchase its Containerboard, Packaging and Recycling (CBPR) business for $6 billion in cash, subject to post-closing adjustments. International Paper expects to close the deal in the third quarter of 2008, subject to customary closing conditions, including regulatory review and receipt of financing. Because the transaction is a purchase of assets rather than of stock, International Paper will realize a tax benefit that has an estimated net present value of approximately $1.4 billion. Taking this benefit into account, the net purchase price is about $4.6 billion.

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