CME shares up 5 pct as NYMEX merger advances

NEW YORK (Reuters) - CME Group Inc CME.N shares rose 5 percent on Tuesday following U.S. Department of Justice approval of the derivatives giant's proposed acquisition of energy and metals exchange NYMEX Holdings Inc NMX.N.

Investors were concerned that the deal might arouse anti-trust concerns, but instead the Justice Department gave the acquisition its unconditional blessing.

The deal still must be approved by NYMEX members and shareholders, many of whom are threatening to torpedo the merger, and by the U.S. Securities Exchange Commission.

The exchanges expect the deal to close in the fourth quarter.

Analysts expect CME to ultimately raise its takeover offer to placate dissident NYMEX shareholders and members. Dissidents are upset by the sharp drop in the value of the deal since it was concluded last January, due to a 35 percent fall in CME's stock price. The shares reached a year high of $715 in December but fell to $375 in early June before rallying.

The stock-and-cash deal was initially valued at $11.3 billion and is worth $9 billion today. CME shares were up $22.74 to $442.15 in midday trade on the New York Stock Exchange.

In a note, Fox-Pelton analyst Edward Ditmire said the DOJ news was positive as it raises the possibility of an earlier close to the deal. But he warned that an accelerated close may weaken CME's negotiating position with dissidents.

A fourth quarter close "would provide more time for CME Group's share price to potentially recover," he wrote.

(Reporting by Phil Wahba; editing by John Wallace)