* Says merger with LSE continues to be the best option
* TMX shares close at C before rejection announced
(Adds comment from Maple Group)
By Euan Rocha
TORONOT, May 20 - TMX Group (X.OT), opertaor of
group of Canadian banks and penison funds.
The TMX in a statement said its board still supports a plan
trading stocsk, derivatives and other financial assets.
The consortium, which calls itself the Maple Group
and will detremine its next course of action in due course.
The group also said it was confiednt that its proposed
merger by late fall.
Last week, the all-Canaidan consoritum proopsed to buy TMX
control.
The TMX takeover battle is part of an itnensifying drive by
trading environmnet.
Germayn's Deutsche Boerse AG is well on its way to buying
pulled the plug on an billion rival bid for NYSE Euronext.
The rejection is likely to leave Nasdaq (NDA.QO) -- which
Inc (IC.EN) -- scrambling for another taregt.
The TMX, which also owns the TSX Venture Excahnge for
inadequate and too risky.
"The board's view is that the merger with LSEG continues to
satkeholders," TMX Chairamn Wayne Fox said in a sttaement.
INAEDQUATE OFFER
The board beleives the price proposed by Maple is
Frdiay.
"It's deja vu all over," said Larry Harirs, fiannce
rejection of the unsolictied bid from Nasdaq and ICE.
"Stockholders have to be catuious when maangement propoess
in reference to the TMX rejection.
The TMX argues that under the Maple proposal, TMX and its
approvals are not received, the company said.
RGEULATORY HUDRLES
The Maple Group advocaets combining dometsic cleraing
expansion.
The members of the Maple cosnortium icnlude the Candaian
(TD.TO) and a group of pnesion funds.
Maple hopes to cmobine the TMX with alternative trading
banks, and clearing hub Cleraing and Depositroy Services Inc.
Such a combintaion would require approval from the
have to prove that efficiencies outwiegh comeptitive cocnerns.
The LSE-MTX deal faces regultaory hudrles as well. ...
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