Canadian banks band together to save stockmarket group
(17 May 2011 – Canada) A group of Canadian banks and pension funds are hoping the C$3.6 billion (A$3.5 billion) offer for TMX Group will keep the nation's largest stockmarket from falling into foreign hands.
The banks have formed a consortium named the Maple Group Acquisition Corp, involving banks that have opposed the LSE deal, arguing it would put control of TMX into foreign hands and threaten Toronto's growing status as a world financial center.
The C$48 per share offer for TMX from a consortium calling itself the Maple Group Acquisition Corp topped a US$3 billion (A$2.8 billion) friendly bid for the exchange operator from the London Stock Exchange.
The offer puts the LSE in a tight spot, forcing it to fend off the rival bid as it seeks to rejuvenate its centuries-old business.
Ontario-based TMX has said its board is analyzing the Maple proposal but it is continuing to pursue the regulatory permits required for the LSE deal. Besides the Toronto Stock Exchange, TMX also owns TSX Venture Exchange for small-cap stocks and the Montreal Exchange for derivatives trading.
Banks in the Maple group include CIBC World Markets, National Bank Financial, Scotia Capital and TD Securities Inc. The same banks are advising on the deal.
Maple also consists of five pension funds - including Alberta Investment Management Corporation, Caisse de depot et placement du Quebec, Canada Pension Plan Investment Board, Fonds de solidarite des travailleurs du Quebec (F.T.Q.) and Ontario Teachers' Pension Plan Board.
The C$48 per share offer for TMX from a consortium calling itself the Maple Group Acquisition Corp topped a US$3 billion (A$2.8 billion) friendly bid for the exchange operator from the London Stock Exchange.
The offer puts the LSE in a tight spot, forcing it to fend off the rival bid as it seeks to rejuvenate its centuries-old business.
Ontario-based TMX has said its board is analyzing the Maple proposal but it is continuing to pursue the regulatory permits required for the LSE deal. Besides the Toronto Stock Exchange, TMX also owns TSX Venture Exchange for small-cap stocks and the Montreal Exchange for derivatives trading.
Banks in the Maple group include CIBC World Markets, National Bank Financial, Scotia Capital and TD Securities Inc. The same banks are advising on the deal.
Maple also consists of five pension funds - including Alberta Investment Management Corporation, Caisse de depot et placement du Quebec, Canada Pension Plan Investment Board, Fonds de solidarite des travailleurs du Quebec (F.T.Q.) and Ontario Teachers' Pension Plan Board.
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