Montreal Exchange Shareholders Approve TSX Takeover
Please note it is your responsibility to evaluate the accuracy, completeness and usefulness of any information, opinion or advice contained in the content below.From Bloomberg.com
By Doug Alexander and Frederic Tomesco
Feb. 13 (Bloomberg) — Montreal Exchange Inc. shareholders accepted a takeover offer by TSX Group Inc., bringing the owner of Canada’s derivatives market a step closer to combining with the Toronto Stock Exchange.
Some 99.6 percent of shareholders voted in favor of the C$1.13 billion ($1.13 billion) cash and stock bid at a meeting in Montreal today, surpassing the required two-thirds support.
Montreal Exchange and TSX Group agreed to combine Canada’s derivatives and equity markets to cut costs and compete with international exchanges, adding to the more than $41 billion in mergers among bourses from Tokyo to Iceland last year.
“We were not surprised,” by the outcome, TSX Group interim Co-Chief Executive Officer Michael Ptasznik said today in a telephone interview. After talking to Canadian and U.S. investors, “they indicated that they would be supportive of this type of transaction.”
Montreal Exchange agreed Dec. 10 to be taken over by TSX Group, owner of the Toronto Stock Exchange. TSX offered C$13.95 a share in cash, and 0.5 TSX shares for each Montreal Exchange share. Quebec’s financial regulator is holding public hearings on the merger on March 26 and 27.
The bourse’s biggest shareholders include Nymex Holdings Inc., owner of the world’s largest energy market, National Bank of Canada, the country’s sixth-biggest bank, Caisse de Depot et Placement du Quebec, a Canadian pension fund, and UBS AG, the biggest bank in Switzerland.
Replacing Nesbitt
The merger is expected to close early in the second quarter, Montreal Exchange Chief Executive Officer Luc Bertrand said on a Feb. 11 conference call.
TSX Group hasn’t picked a new chief executive to run the combined company, to be called TMX Group, after Richard Nesbitt resigned Jan. 7 to head the investment bank of Canadian Imperial Bank of Commerce. Bertrand, 53, was named deputy CEO of the combined company.
TSX Executive Vice President Rik Parkhill and Ptasznik were appointed interim co-chief executives last month while the company seeks a successor to Nesbitt.
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February 14 2008 08:02 pm | Stock Market News
