CME Group Inc. (NYSE: CME) announced plans today for a share buyback and special dividend that effectively sweetens its bid for Nymex Holdings Inc. (NYSE: NMX). The world's largest futures exachange said it would institute a $1.1 billion buyback plan over the next 18 months and pay a $5 per share cash dividend if its bid for the energy and metals exchange succeeds.

The proposed acquisition hit some snags due to a slump in CME Group's share price, which has lowered the takeover price by as much as $3 billion to just $8 billion. The buyback and dividend tactic worked wonders the last time CME Group used it during its acquisition of rival Chicago Board of Trade last year. After all, they are great for shareholders!

The original deal calls for Nymex shareholders to receive $36 and 0.1323 shares of CME for each NMX share. The proposed dividend would raise the purchase price for Nymex stock to $97.11 per share, which represents a $9.27 billion overall valuation. However, some investors are still concerned that the deal may fall through.

Many believe that the CME Group may be forced to tweak the cash portion of the deal slightly higher in order to sway the remaining opposition. This is the cause behind the recent rally in the differential between Nymex and CME Group shares that arbitrageurs have been trading for some time now.

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Winnebago Industries, Inc. (NYSE: WGO) shares fell sharply today after the recreational vehicle maker announced disappointing earnings. The company saw its third quarter profit dive 73% as higher gas prices, tigher consumer credit, and a softer economy drove motor home sales into the ground.

"The motor home market has changed significantly in the past year, with dramatic declines in the past few months," CEO Bob Olson said in a statement. "Discretionary purchases have declined in the United States as the country is faced with unstable fuel prices, consumer confidence at 16-year lows and a tighter credit environment."

Olson also noted that the industry has seen a decrease in motor home sale sof more than 26% for the first four months of this year and a stead decline of more than 30% in both March and April, which are typically stronger months for recreational vehicles. To help combat the declines, the company plane on closing its Charles City factor and restructure itself.

Many investors should have seen this coming with gas prices skyrocketing higher and recreational spending in general on the decline. However, shares in the company still dropped sharply by 5.69%. The stock is already down some 30% so far this year as many expect things to get far worse before they get any better.

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Huntsman Corporation (NYSE: HUN) shares fell sharply today after Hexion Specialty Chemicals said it may not follow through with its promise to purchase the company. Hexion decided not to pursue the purchase amid Huntsman's deteriorating financial condition that has many investors worried. At least one analyst has reduced his target from $28 to $15 per share amid the crisis that has sent shares plummeting.

The move to cancel the merger comes after Huntsman posted an 84 percent drop in first-quarter profits as it saw raw material and feedstock costs soar to record highs as the U.S. dollar weakened further. Sharp increase in raw material costs have been hitting many companies hard that have not hedged their bets. So far this year, Huntsman shares have slipped some 19 percent and they dropped a further 38 percent during today's trading.

Huntsman President and Chief Executive Peter Huntsman said his company would "vigorously enforce" its rights under the original deal and "seek to consummate the merger on the agreed terms". Analysts do not expected a renegotiated deal price at this time, and expect prolonged litigation to add to the uncertainty of the stock. As a result, Huntsman's shares fell sharply on the day.

Huntsman Corporation shares are trading down $8.12, or 38.93%, to $12.74 on the news.

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