The Maple Group bid for the TMX Group is full of regulatory and valuation uncertainties, London Stock Exchange’s CEO Xavier Rolet tells BNN. His remarks come after the Maple group announced on Wednesday that it is taking its bid for the exchange operator directly to shareholders.
“The future value that is suggested…is highly uncertain and cannot be relied upon—not to mention competition issues,” Rolet tells BNN. “They’re [Maple Group] bid is 33 dollars…the rest is a lot of conditionality that we don’t know.”
The competing offers:
- The Maple Group of Canadian banks and pension funds is making a hostile offer of $3.6 billion for TMX. The bid works out to $33 per share in cash with the rest of the purchase to be paid for in Maple shares.
- LSE Group is offering $3.2 billion for TMX in a friendly deal that would see TMX shareholders own 45 percent of the combined company. The bid would be paid for entirely with stock and works out to about $43.91 per TMX share.