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Monday, June 13, 2011

Maple says joining TMX, Alpha, CDS to help markets, (TSE: X), (LSE)

Combining Canada's stock exchanges with alternative trading system Alpha Group and the country's major clearing hub would benefit Canadian capital markets, the Maple Group consortium, which is making hostile takeover bid for stock exchange operator TMX Group (X.TO), said on Monday. The Maple Group -- made up of Canadian banks and other financial institutions -- took its $3.8 billion takeover bid for TMX, which operates the Toronto Stock Exchange, directly to TMX shareholders on Monday. It is trying to scupper a rival, friendly offer for TMX from the London Stock Exchange Group (LSE.L) ahead of a June 30 vote on the LSE bid. Once it buys TMX, it plans to combine it with Alpha and clearing hub Clearing and Depository Services, which are both already largely controlled by the banks. Maple said its plan would benefit Canadian markets as it would result in an integrated trading and clearing exchange for equities, bonds, energy products and derivatives in both exchange-traded and over-the-counter markets.

TMX Group Inc. is an integrated, multi-asset class exchange group. Shares of X fell by 1.45% or $-0.63/share to $42.70. In the past year, the shares have traded as low as $36.93 and as high as $64.03. On average, 9644400 shares of X exchange hands on a given day and today's volume is recorded at 3284693.