* TMX CEO says friendly LSE deal on track for approvals
* Says no "genuine offer" yet from Maple consortium
* TMX shareholders vote on $3.5 billion LSE deal June 30
* More details expected in Maple circular
(Updates with afternoon conference, Rolet comments, shares. In
U.S. dollars unless noted)
By Jonathan Spicer and Solarina Ho
NEW YORK/TORONTO, June 10 The heads of TMX
Group Inc (X.TO) and the London Stock Exchange Group Plc
(LSE.L) said on Friday it is full steam ahead for LSE's
friendly takeover of the Canadian market operator even though a
hostile bid for TMX could come "any day now."
The expected $3.7 billion counteroffer from the Maple Group
consortium of Canadian banks and pension funds will throw a new
hurdle in the path of the LSE's offer to buy the Toronto Stock
Exchange parent for about $3.5 billion.
But TMX Chief Executive Tom Kloet said Maple has yet to put
forth a "genuine offer." The CEOs of the two exchanges said
they were on a "roadshow" to boost the credentials of the LSE
deal ahead of the June 30 shareholder vote.
LSE's planned takeover must pass muster with 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. [ID:nN07117538]
"We think we're in quite good shape now," Kloet told a
global exchanges conference hosted by Sandler O'Neill in New
York on Friday.
He said the company is "in active dialogue" with the
government over the deal, which was announced in February. "We
remain confident that we're on track for that approval."
Kloet and LSE Chief Executive Xavier Rolet said their bid
was different from other transatlantic exchange tie-ups in that
it focused on growth and building new businesses, while other
combinations have focused on cost and revenue savings.
With less than three weeks before shareholders vote, Maple
Group's circular, its formal pitch, is expected soon.
That will provide additional details on the structure of
Maple's $48 a share offer. A source with knowledge of the deal
said the circular will not give specifics on the valuations for
Alpha Group, Canada's biggest alternative trading system, and
for the CDS clearinghouse.
Both entities are controlled by Canada's big banks and
could be put under TMX's umbrella if the Maple deal wins
regulatory and shareholder approval.
The Maple bid, once official, will face antitrust scrutiny
because of the Alpha and CDS proposals give the new entity a
big share of the Canadian market.
Rolet said on Friday the Maple bid was subject to "a
competition review that at best looks highly problematic."
More financial institutions are set to join the Maple bid,
although none have yet signed on, and time is running short for
Maple to persuade TMX shareholders that its "all-Canadian"
option is better for the country's capital markets.
"There's a lot of emotion in that (Maple) deal, I'm not
really sure why or where it comes from," Rolet told Reuters on
the sidelines, calling the emotional component surprising.
Responding to what he called mischaracterizations, Kloet
said TMX and LSE did not accelerate the shareholder vote date,
noting June 14 was the original target. He added the date could
be changed if the pair agreed, but that wasn't his intention.
Shares of TMX were down 37 Canadian cents at C$43.93 on the
Toronto Stock Exchange on Friday afternoon.
(Additional reporting by Pav Jordan; editing by Janet