Intercontinental to pay $8.2B for NYSE

The IntercontinentalExchange has agreed to buy rival exchange NYSE Euronext for $8.2 billion, as it moves to create one of the top futures markets in Europe and position the combined group to challenge arch rival CME Group.

The two exchanges said in an emailed statement on Thursday ICE had agreed to pay $33.12 a share for NYSE Euronext made up of one third cash and two thirds ICE shares.

The multi-billion dollar deal designed to push it into the big league of European derivatives and take on arch rival CME Group.

ICE may consider a spin-off or sale of NYSE's stock markets, a source told Reuters. As well as the 200-year old New York exchange, the NYSE also owns bourses in Paris, Amsterdam, Brussels and Lisbon.

"We can't exclude any option at this stage. It's all down to what regulators will require to get the deal approved, and to the timeframe they will give ICE to meet these targets," a source familiar with the situation told Reuters, adding that a deal was expected to be announced later on Thursday.

ICE has proposed buying NYSE, which also owns derivatives market Liffe, for $33 per share, a 37 percent premium to its Wednesday closing price, CNBC said.

One-third of the deal would be funded by cash and the rest in stock, the source confirmed.

NYSE and ICE representatives declined to comment.

Analysts said a deal would give Atlanta-based ICE a strategic boost with control of Liffe, Europe's second-largest derivatives market, helping it compete against U.S.-based CME Group Inc., owner of the Chicago Board of Trade.

"ICE is after Liffe, that is the crown jewel of NYSE Euronext. ICE could potentially sell the U.S. and European equities business, but could struggle to find a buyer. A spin-off of this business could be more likely," said Peter Lenardos, analyst at RBC Capital Markets.

"Strategically it makes sense for ICE to enter the European derivatives space in a meaningful way, but paying $10 billion -- with debt -- to do so sounds generous for NYSE shareholders and expensive for ICE shareholders.

At the close of trading on Wednesday, NYSE was worth about $5.8 billion, indicating that ICE may be willing to pay roughly $8 billion for the owner of the world's largest stock market.

NYSE shares jumped 12 percent in after-hours trading to $26.96. ICE shares rose 3.1 percent to $132.32.

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An ICE-NYSE Euronext tie-up would leap-frog Deutsche Boerse to become the world's third-largest exchange group with a combined market value of $15.2 billion. CME Group, ICE's largest U.S.-based rival, has a market value of $17.5 billion, Thomson Reuters data shows.

Hong Kong Exchanges and Clearing is the world's largest exchange group with a market capitalization of $19.5 billion.

ICE's main operations are in energy futures trading and unlike NYSE Euronext, it has steered clear of stocks and stock-options trading, so there is not much business overlap between the two groups, making it more likely competition authorities would approve a tie-up.

Last year, the U.S. Justice Department blocked a $11 billion joint hostile bid by ICE and Nasdaq OMX Group for NYSE Euronext on concerns the tie-up would dominate U.S. stock listings.

If that bid had succeeded, ICE planned to buy NYSE Euronext derivatives business while Nasdaq would have taken control of the stock exchanges.

A rival $9.3 billion bid by German exchange operator Deutsche Boerse also ran afoul of regulators.

"I doubt the competition authorities will have a problem with it, there's only a modest overlap between the businesses," said Richard Perrott, an analyst at Berenberg Bank.

"The rationale for the deal will be the same as that with Deutsche Boerse -- migrate the clearing of Liffe derivatives to ICE's services in London and scale up to attract OTC (Over The Counter) derivatives clearing. There could be more than $300 million in cost savings in the deal."

Before the latest ICE offer emerged, NYSE Euronext's shares had fallen by nearly a third since ICE and Nasdaq launched their thwarted joint bid.

The New York Stock Exchange, known as the Big Board and the symbol of U.S. capitalism, has seen its clout fade as new technology and the rise of private trading venues run by Wall Street banks and brokers cut its margins.

Founded in 2000 as a U.S. electricity trading platform backed by Wall Street banks and energy traders, ICE is the product of a string of acquisitions, from the London-based International Petroleum Exchange in 2001 through the New York Board of Trade and, most recently, a handful of smaller deals, including a climate exchange and a stake in a Brazilian clearing house.
 

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Document shows CPS had detailed school closing plans

An internal Chicago Public Schools document obtained by the Tribune shows for the first time that the Emanuel administration has weighed how many elementary and high schools to close in which neighborhoods and how to manage the public fallout.

Labeled a "working draft," the Sept. 10 document lays out the costs and benefits of specific scenarios — revealing that the administration has gone further down the path of determining what schools to target than it has disclosed.

While schools are not listed by name, one section of the document contains a breakdown for closing or consolidating 95 schools, most on the West and South sides, as well as targeting other schools to be phased out gradually or to share their facilities with privately run charter schools.

Mayor Rahm Emanuel and his top school leaders have said they are in the early stages of making difficult decisions and that the city cannot afford to keep operating deteriorating schools with dwindling student populations in the face of a billion-dollar budget deficit. The document goes well beyond what the administration has outlined to the public.

Amid a September teachers strike, the Tribune reported that the Emanuel administration was considering plans to close 80 to 120 schools, most in poor minority neighborhoods. Administration officials have repeatedly denied they have such a figure.

"Unless my staff has a hidden drawer somewhere where they've got numbers in there, we don't have a number," schools CEO Barbara Byrd-Bennett said in November.

But the internal document, prepared at a time when school leaders faced a December deadline to make their decisions public, lays out multiple scenarios for closing neighborhood schools and adding privately run charters — a key component of Emanuel's plans for improving public education. Chicago Teachers Union members, aldermen and other charter school critics have accused the administration of favoring the charters while depriving schools in poor neighborhoods of needed improvements.

The document discusses how to deal with public reaction to school closing decisions, with ideas ranging from establishing "a meaningful engagement process with community members" to building a "monitoring mechanism to ensure nimble response to opposition to proposed school actions."

It is unclear how closely the administration is following the ideas in the 3-month-old document; sources told the Tribune the school closing plans are being constantly updated and subsequent proposals have been kept under close wraps.

The detailed document obtained by the Tribune comes from a time when a Chicago teachers strike interrupted the beginning of the school year and Jean-Claude Brizard was still Emanuel's schools chief; the embattled Brizard quit soon after. Byrd-Bennett was a top education official at CPS under Brizard and was named by Emanuel to succeed him.

CPS spokeswoman Becky Carroll said Tuesday that "this plan was proposed by past leadership at CPS and is not supported by CEO Byrd-Bennett."

"In terms of whatever document you have, I don't care when it's dated, as of today there's no list and there's no plan," Carroll said. "Maybe there were multiple, different scenarios passed around at some point, I don't know, but there's no list of schools.

"When CEO Barbara Byrd-Bennett took this position, she made it very clear that we were going to do this differently than how it's been done in the past," which is why she appointed a commission to take public input on school closings, Carroll said.

But under Byrd-Bennett's tenure, at least one of the proposals outlined in the secret document has come to pass — the idea of a five-year moratorium on further school closings after this school year.

First mention: The September document raises the idea of a moratorium that would extend beyond Emanuel's first term in office as part of the rollout of school closings. But the mayor's first public mention of a moratorium came in November, when he offered it as a sweetener that helped persuade state lawmakers to extend the December deadline for announcing school closings to March.

Critics called the delay a ploy to give opponents less time to organize against the closings. But Emanuel said school officials needed the time to gather community input on the "tough choices" about school closings.

Byrd-Bennett said her decisions on what schools to close won't come until after she receives recommendations from the commission she created. The Tribune reported last week that the commission chairman doesn't plan on issuing recommendations until days before the March 31 deadline for announcing school closings — and even then, there are no plans for the commission to identify individual schools.

While CPS has not released a list of schools to close, it has made publicly available a breakdown of how much a building is used, performance levels per school and how expensive the facility is to keep open. School officials have said underenrollment is a key factor in school closing decisions this year. The school system recently released a list of about 300 "underutilized" schools — nearly half the district — that have dwindling student populations.

But the document obtained by the Tribune contains clues as to how the administration could make those decisions.

Closing breakdown: The most stark page in the document is a graphic that breaks down the 95 schools that could be closed in each of CPS' 19 elementary and high school networks.

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Facebook CEO Mark Zuckerberg donating $500 million in stock to Silicon Valley charity

SAN FRANCISCO – Facebook CEO Mark Zuckerberg said Tuesday he is donating nearly $ 500 million in stock to a Silicon Valley charity with the aim of funding health and education issues.

Zuckerberg donated 18 million Facebook shares, valued at $ 498.8 million based on their Tuesday closing price. The beneficiary is the Silicon Valley Community Foundation, a non-profit that works with donors to allocate their gifts.

This is Zuckerberg’s largest donation to date. He pledged $ 100 million in Facebook stock to Newark, New Jersey, public schools in 2010, before his company went public earlier this year. Later in 2010, he joined Giving Pledge, an effort led by Microsoft Corp. founder Bill Gates and Berkshire Hathaway Inc. CEO Warren Buffett to get the country’s richest people to donate most of their wealth. His wife, Priscilla Chan, joined with him.

In a Facebook post Tuesday, Zuckerberg, 28, said he’s “proud of the work” done by the foundation that his Newark donation launched, called Startup: Education, which has helped open charter schools, high schools and others.

With the latest contribution, he added, “we will look for areas in education and health to focus on next.” He did not give further details on what plans there may be for funds.

“Mark’s generous gift will change lives and inspire others in Silicon Valley and around the globe to give back and make the world a better place,” said Emmett D. Carson, CEO of the foundation.

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Tom Hooper, Mychael Danna join crowded slate of Palm Springs honorees

LOS ANGELES (TheWrap.com) – “Les Miserables” director Tom Hooper and “Life of Pi” composer Mychael Danna are the latest awards-season hopefuls to be added to the slate of honorees at the Palm Springs International Film Festival, PSIFF organizers announced on Tuesday.

The two will join a list of honorees that in recent days has expanded to include Helen Mirren, Richard Gere, Bradley Cooper and Sally Field. Other awards will go to Helen Hunt, Naomi Watts, Robert Zemeckis and the cast of “Argo.”

Hooper will receive the Sonny Bono Visionary Award, named in honor of the singer/producer/actor and Palm Springs mayor who launched the festival. Past recipients include Danny Boyle, Quentin Tarantino, Baz Luhrmann and last year’s winner, “The Artist” director Michel Hazanavicius.

“Tom Hooper brilliantly transforms the classic stage musical ‘Les Misérables’ into a cinema marvel,” said festival chairman Harold Matzner in a press release announcing the awards. “By asking his amazing cast of actors to sing live on film, Hooper allows them to connect even further with their characters, resulting in emotional powerhouse performances that are enthralling audiences worldwide.”

Danna, who has won acclaim for his score to Ang Lee’s “Life of Pi,” will receive the Frederick Loewe Award for Film Composing, a PSIFF honor that in the past has gone to T Bone Burnett, Alexandre Desplat, Danny Elfman, Randy Newman and Diane Warren.

Danna previously wrote music for Lee’s films “The Ice Storm” and “Ride With the Devil.” “Mychael Danna is a pioneer in creating original compositions that are as dramatic and innovative as the films in which they are featured,” said Matzner in the release.

PSIFF’s Awards Gala will take place on Saturday, January 5, and the festival will run from January 3 through January 14.

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Irish Government Set to Allow Abortion in Rare Cases

DUBLIN — The Irish government said Tuesday that it was preparing to allow abortion under limited circumstances in an effort to comply with demands by the European Court of Human Rights to clarify the country’s legal position on the issue.

Cathal Mcnaughton/Reuters

A vigil was held in Dublin on Monday in memory of Dr. Savita Halappanavar, a 31-year-old dentist who died after being denied an abortion.

The proposed legislative and regulatory changes would allow abortion only in cases where there is a real and substantial risk to a woman’s life — as distinct from her health.

The Supreme Court ruled in 1992 that abortion was permissible when risk was present, but the government never passed a law to that effect.

Addressing Parliament after the announcement, Prime Minister Enda Kenny was at pains to emphasize that the proposals would allow abortion only in certain cases. He added that the threat of suicide could be among them.

The abortion debate has convulsed Ireland for decades, but calls for change reached a crescendo after the death of Dr. Savita Halappanavar, a 31-year-old dentist, in October. Dr. Halappanavar arrived at a Galway hospital in severe pain and was found to be miscarrying. Her fetus had a heartbeat, making termination of the pregnancy illegal under Irish law. She died of septicemia a week after admission.

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Property purchase near McCormick gets OK

Convention officials on Tuesday took a step toward acquiring properties north of McCormick Place for the potential development of hotels, restaurants and entertainment venues.

The Metropolitan Pier and Exposition Authority board approved the purchase of a parcel at 2101 S. Indiana Ave. for $5.1 million, with closing expected by year-end. A two-story building on the 23,126-square-foot property is now leased to operators of a methadone clinic.

The property is on the same block as a contested 1.23-acre parcel at 230 E. Cermak Rd., owned since 2005 by Olde Prairie Block Owner LLC. The company, led by developers Pamela Gleichman, Karl Norberg and Gunnar Falk, is fighting in U.S. Bankruptcy Court to retain that parcel as well as the entire block immediately to the east, at 330 E. Cermak, which it has owned since 1998 and hopes to develop as a convention hotel, a smaller boutique hotel and restaurants.

If Olde Prairie fails to show its plan is financially plausible at a hearing Dec. 27, Judge Jack Schmetterer has said he will dismiss it, opening the door for lender CenterPoint Properties Trust to take over the parcels and put them up for auction. Olde Prairie has been in default since early 2009.

Jim Reilly, CEO of the authority, the state-city agency that owns McCormick Place, declined to comment on whether the authority would pursue the Olde Prairie Block properties if they become available.

The authority, commonly known as McPier, has been in talks with DePaul University about the possibility of building an arena for men's basketball near McCormick Place, but Reilly said the purchase of the South Indiana parcel is an independent move aimed at ensuring the authority has room to develop such add-ons as more hotels, restaurants and entertainment venues. DePaul, whose Blue Demons play at the Allstate Arena in Rosemont, also has been in talks with the owners of the United Center.

Meanwhile, speculation has resurfaced about building a casino near McCormick Place, with questions about whether the Olde Prairie blocks would be considered. Reilly said he thinks they are too close to the exhibit halls. Convention officials have said a casino on the convention campus or its immediate vicinity could pull trade show attendees away from the show floor.

McPier's latest acquisition will add to a nearby parcel it already owns at 2100 S. Prairie Ave.

"Ultimately, our goal is to develop a more vibrant and interesting neighborhood for McCormick Place," Reilly said.

McPier will purchase the parcel on South Indiana from RZR Equities LLC, Noah LLC and Hinsdale 111 LLC.

A financial restructuring approved by the Illinois General Assembly in 2010 gave the authority additional borrowing capacity for expansion projects. McPier will use proceeds from expansion bonds to fund the purchase.

kbergen@tribune.com

Twitter @kathy_bergen

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Students returning to classes in Newtown, Conn.

NEWTOWN, CONN. -- The schools of Newtown, which stood empty in the wake of a shooting rampage that took 26 of their own, are filled with the sounds of students and teachers this morning as the bucolic Connecticut town struggles to return to normal.

But among the normal sounds of a school day -- teachers reading to children, the scratch of pencil on paper -- students will hear new ones, including the murmur of grief counselors and the footsteps of police officers.

>> Photos: Newtown school shooting victims

Four days after 20-year-old Adam Lanza strode into Sandy Hook Elementary school and gunned down a score of 6- and 7-year-olds, in addition to six faculty and staff, that school will remain closed. It is an active crime scene, with police coming and going past a line of 26 Christmas trees that visitors have decorated with ornaments, stuffed animals and balloons in the school colors of green and white as a memorial to the victims.

The massacre -- one of the deadliest school shootings in U.S. history, prompting some lawmakers to call for tighter restrictions on guns and causing school administrators around the country to assess their safety protocols.

Newtown police plan to have officers at the six schools that reopened Tuesday morNing, trying to offer a sense of security to the students and faculty, many of whom spent the weekend in mourning. Newtown Police Lieutenant George Sinko acknowledged it may be difficult to ease the worries of the roughly 4,700 returning students and their families.

"Obviously, there's going to be a lot of apprehension. We just had a horrific tragedy. We had babies sent to school that should be safe and they weren't," Sinko said. "You can't help but think ... if this could happen again."

Day for 'healing'

Newtown High School Principal Charles Dumais, in an e-mail to parents, said schools in the district would open two hours later than usual, with counselors available to students and their families.

"This is a day to start healing," Dumais said.

While school officials have not yet decided when Sandy Hook students will resume their studies, the building that they will move into - the unused Chalk Hill School in the nearby town of Monroe - already showed signs of preparation. On a fence opposite the building, a green sign with white lettering proclaimed "Welcome Sandy Hook Elementary!"Dan Capodicci, whose 10-year-old daughter attends the school at St. Rose of Lima Roman Catholic Church, said he thinks it's time for her to get back to classes.

"It's the right thing to do. You have to send your kids back. But at the same time I'm worried," he said. "We need to get back to normal."

Gina Wolfman said her daughters are going back to their seventh- and ninth-grade classrooms tomorrow. She thinks they are ready to be back with their friends.

"I think they want to be back with everyone and share," she said.

Newtown police Lt. George Sinko said whether to send children to school is a personal decision for every parent.

"I can't imagine what it must be like being a parent with a child that young, putting them on a school bus," Sinko said.

The district has made plans to send surviving Sandy Hook students to Chalk Hill, a former middle school in the neighboring town of Monroe. Sandy Hook desks that will fit the small students are being taken there, empty since town schools consolidated last year, and tradesmen are donating their services to get the school ready within a matter of days.

"These are innocent children that need to be put on the right path again," Monroe police Lt. Brian McCauley said.

With Sandy Hook Elementary still designated a crime scene, state police Lt. Paul Vance said it could be months before police turn the school back over to the district and complete their probe into Adam Lanza, who killed his mother, Nancy, athome, before driving to the school armed with a Bushmaster AR 15 rifle and two handguns. After shooting 26 people at the school, he turned his gun on himself when he heard police approaching.

First students laid to rest

Many of the students and faculty of Sandy Hook and its neighbors will still have funerals to attend.

On Monday, Newtown held the first two funerals of many the picturesque New England community of 27,000 people will face over the next few days, just as other towns are getting ready for the holidays. At least one funeral is planned for a student — 6-year-old Jessica Rekos — as well as several wakes, including one for teacher Victoria Soto, who has been hailed as a hero for sacrificing herself to save several students.

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“The Office” head Greg Daniels sells tennis comedy to Fox

LOS ANGELES (TheWrap.com) – “The Office” might be preparing to close up shop, but the series’ creator is most definitely still open for business.

Greg Daniels, who birthed the American version of “The Office” – which is preparing to wrap up its run at the end of this season – has sold a half-hour comedy to Fox via Universal Television and his own Deedle-Dee Productions.

The project was sold through Daniels by Tom Gormican (“Are We Officially Dating?”) and Richie Keen (“It’s Always Sunny in Philadelphia”), who are also writing.

The as-yet-untitled project will revolve around Richie, a so-so tennis pro who returns to his college town to get a fresh start on life. There, Richie finds himself torn between living the carefree life with his bar-owning brother and growing up to pursue Kristen, the love of his life.

Daniels will executive-produce the project via his Deedle-Dee Production, along with Gormican and Keen.

Deedle-Dee’s Howard Klein and Tracy Katsky are also executive-producing, along with Oly Obst.

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McDonald's urging franchisees to open on Christmas

McDonald's Corp. is urging U.S. restaurant owners to take the unusual step of opening on Christmas Day to deliver the world's biggest hamburger chain with the gift of higher December sales, AdvertisingAge reported Monday.

The request -- which comes as McDonald's tangles with resurgent rivals such as Wendy's, Burger King and Yum Brands' Taco Bell chain -- would be a break from company tradition of closing on major holidays.

"Starting with Thanksgiving, ensure your restaurants are open throughout the holidays," Jim Johannesen, chief operations officer for McDonald's USA, wrote in a Nov. 8 memo to franchisees -- one of two obtained by AdvertisingAge.

"Our largest holiday opportunity as a system is Christmas Day. Last year, (company-operated) restaurants that opened on Christmas averaged $5,500 in sales," Johannesen said.

"The decision to open our restaurants on Christmas is in the hands of our owner/operators," McDonald's spokeswoman Heather Oldani told Reuters.

Don Thompson took over as chief executive at McDonald's in July and has the difficult task of growing sales from last year's strong results in a significantly more competitive environment.

McDonald's monthly global sales at established restaurants fell for the first time in nine years in October, but unexpectedly rebounded in November.

The November surprise was partly due to a 2.5 percent rise in sales at U.S. restaurants open at least 13 months.

"Our November results were driven, in part, by our Thanksgiving Day performance," Johannesen wrote in a Dec. 12 memo to franchisees.

Oldani said 1,200 more McDonald's restaurants were open on Thanksgiving this year versus last year -- not 6,000 more as AdvertisingAge reported.

Still, the company has a high hurdle when it comes to posting an increase in restaurant sales this month because its U.S. same-restaurant sales jumped 9.8 percent in December 2011.

"It's an act of desperation. The franchisees are not happy," said Richard Adams, a former McDonald's franchisee who now advises the chain's owner/operators.

The push to open on the holidays goes against McDonald's cultural history, said Adams. In his first published operations manual, McDonald's Corp. founder Ray Kroc said the company would close on Thanksgiving and Christmas to give employees time with their families, Adams said.

"We opened for breakfast on Thanksgiving the last couple years I was a franchisee. It was easy to get kids to work on Thanksgiving because they want to get away from their family, but not on Christmas," Adams said.

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Snowstorm expected to hit Midwest Thursday

Village True Value hardware store manager Scott Enke says the family-owned store in Western Springs has about 10,000 pounds of ice and snow melt products ready for when bad weather hits. (Chuck Berman/ Chicago Tribune / December 17, 2012)

Staff report

8:04 a.m. CST, December 17, 2012

The lack of snow set a new record this morning, but enjoy it while it lasts: Parts of the Midwest could see heavy snow on Thursday, and Chicago is unlikely to be spared.

A snowless Sunday means 2012 will set a new record for the latest date of first measurable snowfall in Chicago.

The previous record year was 1965 when it took until Dec. 16 for O'Hare International Airport to record at least one-tenth of an inch of snow, the National Weather Service's threshold for measurable snowfall.

This year's snowless streak is likely to end Thursday, when a low-pressure system currently over the eastern Pacific Ocean will reach the Midwest, said Mark Ratzer, a senior meteorologist with the National Weather Service in Romeoville.

Parts of the Midwest could see six to 12 inches of snow, and it remains unclear precisely what path the storm will take, Ratzer said.

Current models suggest the heaviest snowfall will land to the west of Chicago, from northern Missouri through eastern Iowa and up into Wisconsin, Ratzer said.

Depending on the storm's path, Chicago could get several inches or less than an inch, but it appears the city will get at least the tenth of an inch needed to record the season's first measurable snowfall, Ratzer said.

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