Bloomberg News

Four Companies Join Maple Group’s Rival Bid for TMX Group

June 12, 2011

(Updates with statement from Manulife in third paragraph.)

June 12 (Bloomberg) -- Desjardins Financial Group, Dundee Capital Markets Inc., GMP Capital Inc. and Manulife Financial Corp. joined a group of Canadian banks and pension funds seeking to buy TMX Group Inc. in a rival proposal to a takeover by the London Stock Exchange Group Plc.

The Maple Group Acquisition Corp. added the financial- services firms to its C$3.58 billion ($3.65 billion) bid for the owner of the Toronto Stock Exchange, according to a statement today. The number of investors in the group climbs to 13 from the nine that made an initial proposal to TMX on May 13.

“We believe first of all that this is an excellent investment for Manulife that makes sense for our shareholders and our business,” Donald Guloien, Manulife’s chief executive officer, said in the statement. “At the same time, we hope that with Maple’s support, the TMX Group can do an excellent job of serving Canada’s capital markets - and grow internationally.”

Maple approached Toronto-based TMX on May 13 with a plan to buy the Canadian exchange owner for C$48 a share in a cash-and- stock transaction. TMX rejected the offer on May 20, saying it wasn’t superior to its Feb. 9 agreement with LSE, prompting Maple to take its unsolicited offer directly to TMX investors.

TMX has backed a C$44.95-a-share, all-stock purchase by LSE, and shareholders of both companies are scheduled to vote on that offer June 30. LSE’s agreement would give TMX shareholders 2.9963 shares for each they own, in a transaction valued at C$3.34 billion. LSE investors would own 55 percent of the company, while TMX shareholders would hold the rest.

Manulife, GMP

Carolyn Quick, a spokeswoman for TMX, declined to comment.

Manulife is Canada’s largest insurer and Desjardins the country’s biggest credit union group. GMP ranks second in size among non-bank brokerages in Canada. Dundee Capital Markets is a Toronto-based brokerage.

Maple Group investors include Toronto-Dominion Bank, National Bank of Canada, Canada Pension Plan Investment Board, Bank of Nova Scotia, Canadian Imperial Bank of Commerce, Caisse de Depot et Placement du Quebec, Ontario Teachers’ Pension Plan, Alberta Investment Management Corp., and Fonds de Solidarite FTQ.

--With assistance from Sean B. Pasternak in Toronto. Editors: Theo Mullen, Bruce Rule

To contact the reporters responsible for this story:] Doug Alexander in Toronto at dalexander3@bloomberg.net Matt Walcoff in Toronto at Mwalcoff1@bloomberg.net

To contact the editors responsible for this story: David Scanlan at dscanlan@bloomberg.net; Nick Baker at nbaker7@bloomberg.net


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