LSE Future Uncertain After Failed Tie-Up With Canada's TMX |
| Wall Street Journal - Jun 29, 2011 |
London Stock Exchange Group PLC's (LSE.LN) future as a leader in global exchanges was thrown into uncertainty when its planned merger with Canada's TMX Group Inc. (X.T) was called off late Wednesday because of uncertainty over whether the required two-third majority of TMX shareholders would approve the deal.
On the eve of crucial shareholder votes by each exchange, proxy information received by TMX revealed that a majority of shareholders gave approval, but the two exchanges doubted that the two-third threshold would be met. Proxies received by LSEG showed an overwhelming holder majority in favor of the deal.
The rejection from TMX shareholders means that TMX may now have to consider a rival offer from Maple Group Acquisition Corp., an all-Canadian group of banks and pension funds.
In broader terms, the failed tie-up means LSE could be left isolated in the global exchanges consolidation game, and analysts have said that a rejection by TMX shareholders also means that the LSE could be vulnerable and become a takeover target.
Read Full Article from Wall Street Journal
- Posted: 2011-06-29 13:49:39
| More Stock Investor Place Top Stories |
 |
|
|
|
| Stock Investor Place Top Stories Archive |
|
|
|
