So much for that deal: TMX Group Inc. called off its agreement to merge with the London Stock Exchange Group PLC, and investors like it. TMX shares, down before the announcement was made shortly before 1 p.m. (ET), jumped about 2.5 per cent from their lows.
The deal collapsed after it became clear that two-thirds of shareholders were not going to approve the deal, failing to pass the necessary threshold. In a statement, TMX Group - which controls the Toronto Stock Exchange - said it would continue to pursue other opportunities. Of course, these include the hostile offer from Maple Group Acquisition Corp., a consortium of 13 major Canadian financial institutions.
As part of the termination, TMX will have to pay LSE at least $10-million - and likely another $29-million on top of that - but investors clearly see an upside here. Maple has offered $50 a share for the company, after recently increasing its offer from $48 a share, although some observers are concerned that any deal would raise regulatory concerns.