Maple turns hostile in bid for Toronto exchange
Tuesday 14 June 2011
The consortium of Canadian financial firms bidding for the Toronto Stock Exchange has called on investors to reject the rival merger plan with the London Stock Exchange in a crunch vote at the end of this month.
The consortium, called Maple Group, formally went hostile in its C$3.7bn (£2.3bn) bid for the Toronto exchange's parent company, TMX, yesterday, saying its offer gave shareholders cash now and higher dividends in the future than the LSE merger plan.
And it set out a range of measures to reassure investors who have been concerned about conflicts of interest at Maple. It said it would create an independent committee to work out the financial details of its plan to merge TMX with Canada's second-largest exchange, Alpha, and its biggest clearing house, CDS, two companies largely owned by members of the Maple consortium.
"We provide a significant premium and 70 per cent cash consideration, whereas the LSE provides neither a meaningful premium nor cash," Maple's chief executive, Luc Bertrand, said on a conference call with investors. "The LSE takeover makes promises, but provides no clear growth strategy."
Last night TMX said it would review Maple's circular and respond on a timely basis. But it noted that it had concluded that May's offer was not a "superior proposal" to its deal with the LSE. TMX shareholders are scheduled to vote on the LSE deal on 30 June.
The companies agreed their merger in February, saying it would create a giant share trading venue with 6,700 companies listed on its stock exchanges, including the LSE-owned Borsa Italiana. The deal would give the Canadian company's shareholders 45 per cent of the combined group.
Maple, whose 13 members own 6.6 per cent of TMX, launched its rival bid in May, and appealed to nationalist sentiment in Canada with its pitch to keep ownership of the Toronto exchange in the country. It faces competition hurdles, though, over its plan to merge TMX with Alpha and CDS.
- 1 President of Argentina adopts Jewish godson to 'stop him turning into a werewolf'
- 2 Doctors remove 80 teeth from boy's jaw
- 3 The 'Black Museum': After 150 years, public set to see exhibits from police’s grisly crime museum
- 4 Sir Winston Churchill’s family begged him not to convert to Islam, letter reveals
- 5 Naomi Wolf reacts to Isis 'conspiracy theories' critism after she questions whether beheading videos are real
President of Argentina adopts Jewish godson to 'stop him turning into a werewolf'
The 'Black Museum': After 150 years, public set to see exhibits from police’s grisly crime museum
Downfall of Dustin 'Screech' Diamond, the 'Saved By The Bell' star charged with bar stabbing
Syrian teenager Usaid Barho reveals how he escaped from Isis using a suicide vest
Sir Winston Churchill’s family begged him not to convert to Islam, letter reveals
Millions of Britons struggling to feed themselves and facing malnourishment
British actor Idris Elba cannot star as James Bond because he is black, says shock jock Rush Limbaugh
Ukip member gets into Christmas spirit with Union Flag plea to Santa 'for our country back'
Germany anti-Islam protests: 17,000 march on Dresden against 'Islamification of the West'
Nigel Farage: Ukip leader named 'Briton of the year' by The Times
Douglas Carswell tells Ukip to stop blaming foreigners as youth poll shows Nigel Farage is even less popular than Nick Clegg
iJobs Money & Business
Not specified: Selby Jennings: VP/SVP Credit Quant Top tier investment bank i...
Not specified: Selby Jennings: Quantitative Research | Global Equity | New Yor...
Not specified: Selby Jennings: SVP Model Validation This top tiered investment...
Highly Competitive: Selby Jennings: Our client, a leading European Oil trading...