Maple boosts hostile bid for TMX

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Maple boosts hostile bid for TMX

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Maple Group has boosted its hostile takeover bid for the Toronto Stock Exchange operator TMX Group.

The all-Canadian consortium – which has just been expanded – is challenging the London Stock Exchange’s friendly merger bid for TMX.

Maple is offering 48 Canadian dollars (34 euros) per share to investors.

It would pay cash for 70 percent of the shares, up from its previous offer of 60 percent.

The group, comprised of four leading banks, five top pension funds and four new institutional investors, said in a takeover circular to shareholders that its offer was “superior” in value and provided greater certainty for TMX shareholders.

With less than three weeks left until investors vote for the LSE-TMX deal, the Canadian consortium urged shareholders to vote against its rival. Maple’s bid dies if TMX shareholders vote for LSE’s lower offer on June 30.

LSE’s planned takeover must be approved by the Canadian government, which will decide if it meets the terms of the Investment Canada Act, which says foreign takeovers must carry a “net benefit” to Canada.

The head of TMX, Tom Kloet, has said the company was “in active dialogue” with the government over the deal.