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 A politically correct lefty goes to see Top Gear live – you'll probably believe what happened next
- 2 Woman accidentally shoots herself in the head while posing for a selfie
- 3 Isis burns woman alive for refusing to engage in 'extreme' sex act, UN says
- 4 Puerto Rico, island of lost dreams: People are leaving the debt-hit territory in droves as near neighbour Cuba's star rises
- 5 David Starkey 'tells Amal Clooney to shut up and stop over-promoting human rights'
Isis 'jihadi bride' claims forced sex with Yazidi girls is never rape because Koran condones it
Woman accidentally shoots herself in the head while posing for a selfie
Isis burns woman alive for refusing to engage in 'extreme' sex act, UN says
David Starkey 'tells Amal Clooney to shut up and stop over-promoting human rights'
16-year-old girl beaten and burned alive by lynch mob in Rio Bravo, Guatemala
As a white man, I'm surprised more women aren't tweeting the hashtag #KillAllWhiteMen
Scotland may have to leave the EU even if it votes to stay in, David Cameron confirms
The day that Britain resigned as a global power
Almost a third of school pupils believe 'Muslims are taking over our country', study claims
SNP fury as HS2 finds 'no business case' for taking fast train service to Scotland
Gay marriage 'Bert and Ernie' cake bakery found guilty of discrimination in Northern Ireland
iJobs Money & Business
£40-50K: Guru Careers: We are seeking an experienced Software / C# Developer w...
£45,000 - £55,000: Neil Pavier: Are you looking for your next opportunity for ...
£45,000 - £55,000: Sheridan Maine: Are you a newly qualified ACA/ACCA/ACMA qua...
£50,000 - £60,000: Laura Norton: Are you looking for an opportunity within a w...