Wednesday, June 22, 2011

LSE Special Dividend for TMX Shareholders. Hopes to Fend off Maple Group.

In its attempt to woo reluctant TMX Group (TSE: X) shareholders, the London Stock Exchange Group has announced that, should they agree to merge, TMX Group shareholders will receive a one time special dividend in the amount of $4 per share.

This is great news for current holders of the stock as it is evidence that the LSE's battle with Maple Group, a consortium of Canadian financial heavyweights, is intensifying and that it will undoubtedly result in a higher amount of cash in the pockets of TMX Groups' owners.

The key proxy vote to decide whether or not TMX and LSE will merge is to occur at the end of the month, and if it does, the cash payment will be made in the Autumn of 2011. Previously, I had been siding with Maple Group, believing that the cash portion of the LSE's offer was too low. This new announcement changes the equation and definitely makes LSE's offer more compelling. To be sure, this website must now steer its Intelligent Investors toward voting yes to the merger. Now it offers a reasonable amount of cash and growth in a future international and domestic enterprise... you can, as they say, "have your cake and eat it too," with this deal.

Happy Investing, and to read more:

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