Enviado: 29/6/2011 20:41LSE, TMX abort merger plans, leaving both vulnerable
On Wednesday June 29, 2011, 3:20 pm
By Pav Jordan and Luke Jeffs
TORONTO/LONDON (Reuters) - The London and Toronto stock exchanges abandoned plans for a C$3.6 billion tie-up on Wednesday, turning both into takeover targets in a world already facing a wave of exchange consolidation.
The failed bid from the London Stock Exchange, opens the door to a hostile C$3.8 billion offer for TMX Group from Canada's Maple Group consortium, which promised a made-in-Canada alternative to a takeover that would have put a big domestic asset in foreign hands.
It also turns the spotlight on the LSE as a target as exchanges consolidate to grow and broaden geographic reach, and to fight off rivals and new market entrants.
"While the failed deal probably puts an end to TMX's M&A ambitions, other exchange operators will likely continue to look for partners. This reinforces my belief that we should expect more mergers, not less," said Ed Ditmire, New York based analyst for Macquarie Securities.
In brief statements issued just one day before a crucial shareholder vote, the exchanges said they realized TMX shareholders would not give them the two-thirds majority they needed to approve a friendly deal that would have given The LSE 55 percent of a new powerhouse in resource and energy equity.
TMX Group, operator of the Toronto Stock Exchange, said it would now review opportunities, including the Maple offer.
http://finance.yahoo.com/news/LSE-TMX-a ... et=&ccode=
On Wednesday June 29, 2011, 3:20 pm
By Pav Jordan and Luke Jeffs
TORONTO/LONDON (Reuters) - The London and Toronto stock exchanges abandoned plans for a C$3.6 billion tie-up on Wednesday, turning both into takeover targets in a world already facing a wave of exchange consolidation.
The failed bid from the London Stock Exchange, opens the door to a hostile C$3.8 billion offer for TMX Group from Canada's Maple Group consortium, which promised a made-in-Canada alternative to a takeover that would have put a big domestic asset in foreign hands.
It also turns the spotlight on the LSE as a target as exchanges consolidate to grow and broaden geographic reach, and to fight off rivals and new market entrants.
"While the failed deal probably puts an end to TMX's M&A ambitions, other exchange operators will likely continue to look for partners. This reinforces my belief that we should expect more mergers, not less," said Ed Ditmire, New York based analyst for Macquarie Securities.
In brief statements issued just one day before a crucial shareholder vote, the exchanges said they realized TMX shareholders would not give them the two-thirds majority they needed to approve a friendly deal that would have given The LSE 55 percent of a new powerhouse in resource and energy equity.
TMX Group, operator of the Toronto Stock Exchange, said it would now review opportunities, including the Maple offer.
http://finance.yahoo.com/news/LSE-TMX-a ... et=&ccode=