March 9, 2011 / 1:21 PM / 7 years ago

UPDATE 1-Canada banks to raise concerns on TMX deal -report

* Banks concerned about Toronto as financial center

* TD, CIBC, Scotia, National plan to sign public letter

* Other Canadian financial firms asked to sign

(Adds details)

TORONTO, March 9 (Reuters) - Four of Canada’s six biggest banks are ready to go public with concerns about the London Stock Exchange’s (LSE.L) bid for the TMX Group (X.TO), a newspaper reported.

The banks fear Toronto would risk losing its influence as a financial center if the LSE joins forces with the TMX, owner of the Toronto Stock Exchange, the Globe and Mail newspaper said.

Last month, the London Stock Exchange said it planned to take over TMX, operator of the Toronto Stock Exchange, in a C$3.1 billion ($3.2 billion) deal.

    The four banks - Toronto-Dominion Bank (TD.TO), Bank of Nova Scotia (BNS.TO), Canadian Imperial Bank of Commerce (CM.TO) and National Bank of Canada (NA.TO) - intend to spell out their concerns this week in a public letter, the paper said in a report posted on its website.

    “Toronto’s hopes to be a global financial services hub could suffer a severe and potentially irreversible setback,” the paper said, citing a draft of the letter.

    Any new opposition to the deal would add to sharp criticism already expressed by politicians in Ontario, the Canadian province where Toronto is located.

    The list excludes Royal Bank of Canada (RY.TO), the country’s biggest bank, as well as the Bank of Montreal (BMO.TO).

    GMP Capital (GMP.TO), AltaCorp Capital, Canaccord Financial (CF.TO) and other Canadian financial firms are also being asked to sign the letter, the Globe said.

    Reporting by S. John Tilak and Pav Jordan; Editing by Frank McGurty

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