GMP Chief Says LSE Has More To Gain In Merger With TSX
GMP Capital Inc. (GMP) Chief Executive Officer Harris Fricker says the London Stock Exchange Group Plc ( LSE ) has more to gain than TMX Group Inc. (X.TO) in their proposed $3.2 billion combination, according to a Bloomberg story.
"If you ask me why London wants to do the deal, it's a no- brainer," said Fricker, whose Toronto-based brokerage is the second-biggest block trader on Canada's main stock exchange, according to the report. The LSE's junior market, AIM, "is broken and London is not a major participant in the global resource game," he reportedly added.
Fricker reportedly said he's surprised that TMX wasn't the acquirer in the combination, in which the London Stock Exchange owner will hold 55% of the merged company.
"No one's commenting on the biggest fact of this deal, and that is: Why a highly viable exchange is dinner versus diner," Fricker reportedly said in a phone interview today. "Why aren't these guys buying the London Stock Exchange?"
GMP, Canada's second-biggest independent brokerage, was among the firms that declined to sign a letter this week from some of Canada's biggest banks opposing LSE's takeover of the Toronto Stock Exchange owner. GMP hasn't decided to endorse or reject the deal.
Canadian Imperial Bank of Commerce (CM.TO), Toronto-Dominion Bank (TD.TO) and National Bank of Canada (NA.TO) are among the detractors of the transaction, concerned about job cuts and loss of regulatory control. Supporters, including Royal Bank of Canada (RY.TO) and Bank of Montreal (BMO.TO), say the takeover offers companies on the exchange a broader pool of investors.
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