Toronto Stock Exchange Merger
Posted Jun 29, 2011 02:59:11 PM.
This article is more than 5 years old.
The group that operates the Toronto Stock Exchange has killed a $3.7-billion proposed merger with the London Stock Exchange Group.
The exchange says the controversial deal doesn’t have enough shareholder support to go through.
TMX Group (TSX:X) says a majority of proxy votes supported the merger. But it was “clear” the proposal would not achieve the required two-thirds support.
TMX and LSE shareholders were scheduled to hold a vote Thursday morning on the merger deal.
Tom Kloet, the CEO of TMX Group says it will now review a rival hostile takeover bid by Maple Group Acquisition Corp, a group of 13 Canadian banks and pension funds.
TMX says it will pay a $10 million termination fee to the LSE, and a further $29 million if the acquisition with Maple goes through.
