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London Stock Exchange 'committed' to TMX deal | London Stock Exchange 'committed' to TMX deal |
(about 1 hour later) | |
The London Stock Exchange has said it "remains committed" to its merger with Toronto Stock Exchange owner TMX, despite news of a counter offer. | The London Stock Exchange has said it "remains committed" to its merger with Toronto Stock Exchange owner TMX, despite news of a counter offer. |
"London Stock Exchange Group and TMX have initiated the application process with Canadian federal and provincial authorities," the statement reaffirmed. | "London Stock Exchange Group and TMX have initiated the application process with Canadian federal and provincial authorities," the statement reaffirmed. |
On Saturday, a group of Canadian banks and pension funds unveiled a $3.7bn rival bid for TMX. | |
LSE's share price rose 6.5% by lunchtime in London on Monday. | |
The rally may reflect market expectations that the LSE may now become a takeover target. | |
"The view among the global financial elite is that if the LSE is frustrated in its attempt to merge with TMX, predator will become prey: the LSE itself will be gobbled up by some or other overseas rival," says BBC business editor Robert Peston. | |
The share price rally was given an extra 4% leg-up at lunchtime from news that Nasdaq is dropping its bid for the New York Stock Exchange and, by implication, may be available to bid for the LSE instead. | |
'Exciting' offer | |
TMX said it would consider the new bid while still seeking shareholder and regulatory approval for the LSE deal. | TMX said it would consider the new bid while still seeking shareholder and regulatory approval for the LSE deal. |
Recent months have seen a spate of merger talks between the world's leading stock exchanges. | Recent months have seen a spate of merger talks between the world's leading stock exchanges. |
In March, the US exchanges Nasdaq and ICE mounted their now-withdrawn bid for NYSE Euronext, in an effort to top an existing offer from Deutsche Boerse. | |
Last month, for its part, Australia indicated that it would block a bid from the Singapore stock exchange for ASX, the firm that owns the Australian Stock Exchange. | |
The fresh bid for TMX was made by a number of Canadian financial institutions operating under the name Maple Group Acquisition Corporation. | The fresh bid for TMX was made by a number of Canadian financial institutions operating under the name Maple Group Acquisition Corporation. |
"Now Canadians have a Canadian alternative to look at that points to the strength of our financial services sector," said Ontario Finance Minister Dwight Duncan. | "Now Canadians have a Canadian alternative to look at that points to the strength of our financial services sector," said Ontario Finance Minister Dwight Duncan. |
He said the government would look at the bid, but while it was too early to say whether he personally preferred Maple's offer to that of the LSE, he was "excited" a Canadian bid had been made. | He said the government would look at the bid, but while it was too early to say whether he personally preferred Maple's offer to that of the LSE, he was "excited" a Canadian bid had been made. |
Any deal for TMX must gain government approval. | Any deal for TMX must gain government approval. |
At the end of last year, the Canadian government blocked an offer for fertiliser group Potash Corporation from Anglo-Australian mining giant BHP Billiton on the basis that it was not in Canada's national interest. | At the end of last year, the Canadian government blocked an offer for fertiliser group Potash Corporation from Anglo-Australian mining giant BHP Billiton on the basis that it was not in Canada's national interest. |