Feb 17 2011 |
more articles from
|
Borse Dubai’s stake sale not condition for LSE-TMX merger
Thursday, Feb 17, 2011
Gulf News
sources dismiss reports as rumours after share swap announcement
Borse Dubai’s stake sale not a pre-condition for LSE -TMX merger
Dubai The London Stock Exchange yesterday clarified that a reduction of Borse Dubai’s stake in the exchange is not a pre-condition for the proposed merger between LSE and the Canadian stock exchange TMX.
Reacting to local media reports that Borse Dubai has been asked by LSE to reduce its stake in LSE to facilitate the merger, the LSE spokesperson said the exchange wouldn’t comment on speculation. Borse Dubai sources yesterday dismissed the reports as rumours.
LSE and TMX announced an all share swap merger last week, creating a global trading powerhouse, with more than 6,700 listed companies.
Currently Borse Dubai and Qatar Investment Authority hold 20.6 and 15.1 per cent respectively in LSE. The merger would see LSE investors own 55 per cent of the enlarged group, with TMX stockholders receiving 2.9963 LSE shares for every share held in the Toronto-based group, bringing Borse Dubai’s stake to 11.3 per cent in the merged entity.
Voting shares
Sources in Borse Dubai said the speculation that Borse Dubai would reduce its stake in LSE has its roots in the requirement that Ontario and Quebec securities regulators must approve any sale of more than 10 per cent of the voting shares of TMX Group Inc., owner of the Toronto Stock Exchange.
“There is always the possibility that the deal can secure the regulatory approval even with a higher shareholding above the threshold limit of 10 per cent,” a Borse Dubai source said.
“ Borse Dubai has always been supportive of management initiatives to create shareholder value in the London Stock Exchange. We continue to support the management in their efforts to create both a stronger platform and a more valuable enterprise for stakeholders,” Borse Dubai said in a statement following the announcement from LSE and TMX on the proposed merger.
Analysts said Canada’s fragmented regulatory regime would mean it could take several months for the deal to get the required approvals, even with a stake reduction by Borse Dubai . The merger will involve a review by the federal government in addition to oversight by at least four provinces: Ontario, Quebec, Alberta and British Columbia.
Under the Investment Canada Act, Canada’s Industry Minister Tony Clement will have to approve the deal. The ministry announced a review of the approval process in November after the government blocked the proposed $40 billion (Dh147 billion) bid for Potash by BHP Billiton.
By Babu Das Augustine?Deputy Business Editor
© Gulf News 2011. All rights reserved.
Zawya Comment Policy
-
Zawya encourages you to add a comment to this discussion. You agree that when you add content to this discussion your comments will not:
1.1 Contain any material which is libelous or defamatory of any person, is obscene, offensive, hateful or inflammatory or causes damage to the reputation of any person or organisation.
1.2 Promote sexually explicit material, violence, discrimination based on race, sex, religion, nationality, disability, sexual orientation or age or any illegal activity.
1.3 Be made in breach of any legal duty owed to a third party, such as a contractual duty or a duty of confidence.
1.4 Be threatening, abuse or invade another's privacy, or cause annoyance, inconvenience or needless anxiety.
1.5 Be used to impersonate any person, to misrepresent your identity or affiliation with any person, or be likely to deceive any person.
1.6 Give the impression that they represent Zawya.
1.7 Advocate, promote or assist any unlawful act such as (by way of example only) copyright infringement or computer misuse. - The content posted on www.zawya.com is created by members of the public. The views expressed are theirs and unless specifically stated are not those of Zawya. Zawya reserves the right to review all comments prior to posting and edit or delete any contribution, but Zawya is not responsible for and can not be held liable for any content posted by members of the public on www.zawya.com.
- Zawya is not responsible for the availability or content of any third party sites that are accessible through www.zawya.com. Any links to third party websites from www.zawya.com do not amount to any endorsement of that site by Zawya and any use of that site by you is at your own risk.
- By submitting your comment, you hereby give Zawya the right, but not the obligation, to post, air, edit, exhibit, telecast, webcast, re-use, publish, reproduce, use, license, print, distribute or otherwise use your comments worldwide, in perpetuity.
Copyright © 2012 Zawya Ltd. All rights reserved. |
provided by www.zawya.com |
Post Your Comment