London Stock Exchange Chief Xavier Rolet welcomed a decision by the LSE's merger target TMX Group to reject a rival take-over bid, clearing a key hurdle in a deal it needs to compete globally. "Once people had a chance to sit down and consider the Maple scheme of arrangement, there were a number of factors that appeared unattractive. At the same time we are pleased that the merits of our merger proposal have been fully understood," Rolet told Reuters in a phone interview.
The LSE agreed a $3 billion merger with TMX in February, but the plan was cast into doubt last week when the Maple consortium of Canadian banks and funds tabled a $3.6bn offer - a move that could still derail the LSE bid and, ultimately, make the British exchange a takeover target itself. But the LSE was given a much-needed boost late on Friday when TMX emphatically rejected the Maple offer, citing concerns over leverage, a lack of information and the regulatory hurdles.