CME gets equity stake in BM&F<br>

CHICAGO, Ill.  (PRNewswire) — CME Group and the Brazilian Mercantile & Futures Exchange S.A. (BM&F) announced the execution of definitive agreements related to the previously announced cross investments between the two exchanges.<br>
CME will acquire an approximately 10 percent equity stake in BM&F, and BM&F will acquire approximately 1.19 million shares of CME common stock. Concurrent with the closing of the cross-equity investment, the parties also plan to enter into an order routing arrangement in which CME would connect its CME Globex electronic distribution network to BM&F, and BM&F would connect its distribution network to CME Globex for the routing of orders for electronic trading of the products of both exchanges.<br>
Closing of the transaction remains subject to BM&F shareholder approval and other customary closing conditions, including Brazilian regulatory approval. The BM&F shareholder meeting has been called for Feb. 26; there can be no assurance that all conditions to closing will be satisfied.<br>
CME and BM&F have also entered into a memorandum of understanding to explore additional commercial agreements, including: CME providing offshore collateral management services; BM&F becoming a “super-clearing” member of CME to facilitate access to CME products on behalf of BM&F market participants that lack independent arrangements with CME clearing members; and joint product development.<br>
Lehman Brothers is acting as financial advisor to CME and Skadden, Arps, Slate, Meagher & Flom, LLP is acting as CME’s legal advisor.<br>
Energy company seeks leases<br>

STANTON TOWNSHIP, Mich. (AP) — Wind could someday be generating electricity in Houghton County in western Upper Michigan.<br>
Heritage Sustainable Energy, LLC has been securing leases from property owners along a ridge in the central part of the Keweenaw Peninsula. The Traverse City-based company hopes to be able to lease 2,000-3,000 acres, then begin testing the area’s wind potential.<br>
Project coordinator Rick Wilson said the company proposes erecting three-bladed upwind turbines, but more analysis is needed. He told The Daily Mining Gazette of Houghton the power generated by the turbines would be sold on the electricity market.<br>
Wilson says lessors will receive royalty payments for the power generated by turbines on their land if the wind farm is developed.<br>
Monsanto needs seed plant site<br>
WATERLOO, Iowa (AP) — Monsanto Co. is looking for another site in northeastern Iowa for its new seed corn production plant.
The company announced it’s no longer pursuing a proposal to build a $90 million plant on 153 acres south of Waterloo in Black Hawk County.<br>
County zoning officials rejected Monsanto’s request to rezone the land earlier this month. Monsanto spokesman Kent Martin says many factors contributed to the decision. The new plant requires about 150 acres of land and is expected to employ about 40 full-time workers.<br>
The plant is part of a $231 million expansion at four Iowa locations and a $610 million expansion company-wide.<br>
Judge allows Smithfield lawsuit<br>

RICHMOND, Virginia (AP) — A federal judge gave the go-ahead to Smithfield Foods, Inc.’s racketeering lawsuit against a union seeking to organize thousands of workers at the world’s largest hog-slaughtering operation.<br>
U.S. District Judge Robert E. Payne turned away the United Food and Commercial Workers International Union’s (UFCW) efforts Jan. 29 to dismiss Smithfield’s lawsuit brought against the UFCW, one of its local chapters and several other defendants.<br>
The Smithfield-based meat company alleges the defendants violated the Racketeer Influenced and Corrupt Organizations statute, which was originally designed to fight organized crime, in its efforts to unionize Smithfield’s huge hog slaughterhouse in Tar Heel, N.C. The union’s efforts amount to extortion by taking away Smithfield’s intangible property – its ability to conduct business the way it chooses – Smithfield’s lawsuit argues.<br>
“They’re prepared to put you out of business if you don’t succumb to their demands,” which is the definition of extortion, Smithfield lawyer Thomas G. Slater argued. He also said if the company has to recognize the union, Smithfield will have to change the fundamental way it does business, putting the company at a distinct competitive disadvantage.<br>
In a statement, Smithfield said the ruling “is a pivotal step toward upholding the law, protecting the rights of Smithfield’s workers, and preventing further damage to Smithfield’s business.”<br>
Telephone messages left Jan. 29 for Gene Bruskin, who is leading UFCW’s efforts to organize the Tar Heel plant, and Leila McDowell, another union organizer, were not immediately returned. Robert Weinberg, a lawyer representing the union, said the UFCW’s only goal is to secure voluntary union recognition for the 4,650 workers at the plant, which it has tried to unionize since the slaughterhouse opened in 1992.<br>
“There isn’t any other objective,” he said.<br>
Slater said the UFCW and affiliated groups and organizers have damaged Smithfield with a campaign to highlight what the groups say are unsafe and unsanitary working conditions, racism at Smithfield plants and the poor treatment of employees – all allegations he denied.<br>
Weinberg said Smithfield should address such issues by applying defamation statutes, not anti-racketeering measures.