* Maple approach for TMX "appeared unattractive" - Rolet
* Rolet said LSE was eyeing regulations six months out
(Adds further comments from Rolet)
By Luke Jeffs
LONDON, May 21 London Stock Exchange (LSE.L)
Chief Xavier Rolet welcomed a decision by the LSE's merger
target TMX Group (X.TO) to reject a rival takeover 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.
"Our deal does not require leverage, unlike the Maple plan
which would have higher levels of leverage than even Nasdaq OMX
(NDAQ.O)," Rolet said.
TMX also affirmed on Friday its commitment to a merger with
the British exchange.
"TMX Group entered into the merger with the LSE as the best
path forward for TMX Group, its shareholders and stakeholders,"
the exchange said in an emailed statement.
"Ours is a strong deal and we took more than six months to
review the legal and regulatory aspects before we announced the
agreement. There are some national issues but what matters is
the law and we believe we have structured a strong proposal,"
Rolet said in the interview.
The Maple Group issued an emailed statement in response to
the TMX announcement saying: "We will determine our next steps
in due course."
The LSE wants the TMX merger to diversify its revenue
streams geographically and increase its muscle power in its
ongoing fight with exchange giants NYSE Euronext NYX.N and
Deutsche Boerse (DB1Gn.DE), themselves in merger talks.
(Editing by Douwe Miedema)