London (Reuters)-The London Stock Exchange faces a nail-biting fight for Canadian peer Group TMX rival bidder after aggressive invented Maple sweetened its offer of a breath during the night.
The British stock market, which had hoped to conquer Canadian shareholders of TMX favoring its agreed all-share of 3.3 billion dollar offer with a special dividend of 673.5 million, on Wednesday, saw Maple retaliation a few hours later.
Maple unashamedly nationalistic, which is supported by 13 of the largest financial firms in Canada, touched its unsolicited cash and stock offer C $ 2 per share above 50 dollars vs. a share, valuing its offer of c $ 3.8 billion (3.88 billion).
With one week to go before crucial shareholder vote on the deal LSE agreed, LSE Chief Executive Xavier Rolet is fighting to ensure that the scale and the weight that the bag needs to fight rivals, agile-new market operators and predators.
Some financiers not involved in the deal say that Rolet played his last hand. Betting against an escalation of the war, one said the prospects for securing TMX "doesn't look good."
"Would look bad if they raised and then raised again just a week before the shareholder vote. It would be like a game of tennis, "he added.
Numis Securities analyst James Hamilton said: "I suspect the LSE shareholders approve the deal on 30 June-whereas a close call that way will be TMX shareholders."
Analysts noted that the special dividend of LSE-LSE 84.1 pence per share and C $ 4.0 to TMX share-could add a welcome element of cash to offer agreed, but it also meant that the company would have to borrow to pay for it.
"The dividend LSE has nothing to do with the value of the deal, rather only means cash dividend for shareholders and a business more leverage. The tax benefit is the only way that the dividend is the most interesting, "said Hamilton.
LSE AMBITIONS HANG IN BALANCE
Exchanges of London and Canada say that their relationship will create a transatlantic stock trading powerhouse with a particular specialisation in minerals and raw materials, the existing strength of the Toronto Stock Exchange.
But critics say he would push a key firm in Canada foreign hands, and Maple is pitching itself as a "made-in-Canada".
TMX said he detected a new offer of Maple and would review it.
A spokesman for the LSE declined to comment on Thursday. British actions in the Exchange were flat at 957 pence in midday trade, a FTSE 250 weak bucking. Analysts have long said that the price reflected hopes for market acquisition, LSE.
Exchange, rejected the unwanted attention of bidders before Rolet took the helm of a little over two years ago, would be back in the game if its fails to buy TMX.
"If the LSE doesn't get TMX then someone probably going to come to bid for them," said one of the 50 largest shareholders of the LSE.
American exchange operator Nasdaq OMX, which failed to derail an agreed merger between Deutsche Boerse and NYSE Euronext, has twice tried and failed with hostile LSE acquisitions over the past five years.
Under the offer, shareholders will receive shares of TMX Group LSE 2.9963 for each share TMX, leaving LSE shareholders with 55 percent of the new company and shareholders TMX with 45 percent.
The LSE needs approval from provincial regulators and Federal Minister for industry, Christian Paradis, who must determine whether the offer is of net benefit to Canada.
(Additional Reporting by Victoria Howley and Chris Vellacott)
(Edited by Kirstin Ridley and Erica Billingham)
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