The excellent National Post published on Thursday June the 16th a follow up to the still ongoing imbroglio surrounding LSE’s bid for TMX, versus the local bid presented by the Maple Group created out of several canadian banks and pension funds. Xavier Rolet, CEO of the LSE, and Thomas Kloet, chief executive of TMX Group Inc, paid a visit to corporate Quebec on last Wednesday in a Marriott Hotel ballroom. They went there basically to try wining over the opinion of Quebec’s financial elite who had nevertheless already presented a counter-offer through the Maple Group for the acquisition of TMX. As Premier Jean Charest does endorse Maple Group’s bid and that the Group includes many financial institutions based in Quebec, the task ahead was difficult.
First, we must all admit that Xavier Rolet does what he has to do: he gives his sales pitch like a professional. He presents arguments, elements of interest, etc, to try to win over a favorable opinion. As an example, he even said that Maple’s bid was based on « worry and fear ». Now, that’s a big statement but it misses the point. Those who back LSE’s bid think there is no problem with it, since Canada is an open market economy. O.K. But again, that’s not the point. TMX-LSE merger has been presented, from the start, as a « merger of equals » . I am not inventing it, these are their own words. But when you end up with only 45% of the shares, compared to 55% for the opposing merging company, that’s not a « merger of equals », it is an acquisition, a take-over in disguise. I am not an economist. I don’t even have an undergraduate degree in mathematics. But I know my numbers. 45 doesn’t equal 55. Period. Whatever way you want to put it, these two numbers will never equal. Are you taking us for fools? Continuer la lecture