Thursday, May 25, 2006
TSX Group, minus ownership restrictions, could be acquired by NYSE - report
TSX Group, minus ownership restrictions, could be acquired by NYSE - report
Story TSX Group could eventually be taken over by the New York Stock Exchange if the ownership-stake restriction is removed, reported the Globe and Mail.
According to the unsourced report, the listed Canadian owner of the Toronto Stock Exchange is essentially takeover-proof as a result of a stipulation that the Ontario Securities Commission must give its consent to any investor desiring to own in excess of 10% of TSX Group. The report added that the most sensible protection for investors would be to terminate the ownership-limit rule, a move which could eventually see the NYSE acquire TSX Group. As it now stands, TSX Group is starting to see its share price being adversely impacted because of the company's takeover-proof status. TSX Group has some CAD 313.6m (USD 279.8m) in cash available and zero debt.
While TSX Group has previously expressed an interest in acquiring the Montreal Exchange, which itself focuses on derivatives, the report noted that there are concerns that it could ultimately pay too much for the asset if it does make a bid.
Previous reports have said that the NYSE and Deutsche Boerse, which operates the Frankfurt Stock Exchange, are bidding to acquire Euronext, a cross-border exchange organization in Europe. Furthermore the reports said that the London Stock Exchange could eventually be acquired by the Nasdaq Stock Market in New York.
Source Globe and Mail
Value USD 280m (cash)
Story TSX Group could eventually be taken over by the New York Stock Exchange if the ownership-stake restriction is removed, reported the Globe and Mail.
According to the unsourced report, the listed Canadian owner of the Toronto Stock Exchange is essentially takeover-proof as a result of a stipulation that the Ontario Securities Commission must give its consent to any investor desiring to own in excess of 10% of TSX Group. The report added that the most sensible protection for investors would be to terminate the ownership-limit rule, a move which could eventually see the NYSE acquire TSX Group. As it now stands, TSX Group is starting to see its share price being adversely impacted because of the company's takeover-proof status. TSX Group has some CAD 313.6m (USD 279.8m) in cash available and zero debt.
While TSX Group has previously expressed an interest in acquiring the Montreal Exchange, which itself focuses on derivatives, the report noted that there are concerns that it could ultimately pay too much for the asset if it does make a bid.
Previous reports have said that the NYSE and Deutsche Boerse, which operates the Frankfurt Stock Exchange, are bidding to acquire Euronext, a cross-border exchange organization in Europe. Furthermore the reports said that the London Stock Exchange could eventually be acquired by the Nasdaq Stock Market in New York.
Source Globe and Mail
Value USD 280m (cash)
