TMX deal opponent set to issue "minority" report

Fri Apr 8, 2011 1:06pm EDT
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By Claire Sibonney and Pav Jordan

TORONTO (Reuters) - A critic of plans to take over Canadian exchange operator TMX Group will put out a minority report that opposes recommendations to come from an Ontario legislative panel, raising the prospect that an early step in a complicated review process will approve the deal.

Gilles Bisson, the only member of the left-of-center New Democratic Party on the Ontario committee, would not comment on the contents of his minority report, or on the conclusions of the majority report.

But Bisson has in the past opposed the proposed C$3 billion ($3.1 billion) takeover by the London Stock Exchange, which would create a $7 billion transatlantic exchange doing $4 trillion in annual trading, arguing that Canada could lose control of its capital markets to a holding company in London.

"I will be filing a minority report ... but I can't get into any of the details," Bisson told Reuters on Friday.

Both reports are due to be made public by April 21.

Ontario, home to the Toronto Stock Exchange and Canada's financial center, formed an all-party legislative committee to review the deal soon after it was proposed in February.

The panel's report will not be binding, but it is expected to carry weight with provincial securities regulators, and with federal government officials, who will have to approve the deal in a multi-layered process that won't be over for months.

Finance Minister Dwight Duncan said earlier this week that the committee's recommendations might not be unanimous.   Continued...

<p>London Stock Exchange CEO Xavier Rolet (L) and TMX Group CEO Tom Kloet shake hands in Toronto, February 9, 2011. REUTERS/Mark Blinch</p>