EXCHANGE NEWSWIRE, 9 September 2011
DB1-NYX deal: both DB1 and NYX will not insist on a mandatory buy-out of the shares in DB1 that have yet to be tendered in favor of the planned merger. DB1 CFO Gregor Pottmeyer said that “effecting a squeeze out is not at all necessary to achieve our financial and synergy goals”. Investors who have not placed their shares in favor of the deal have until November 4 to do so according to previous deal terms.
DB1-NYX deal: European Union Competition Commissioner Joaquin Almunia said that the proposed merger required more sophisticated analysis to preserve competition. Almunia also said that the Commission is considering “the potential loss of head-to-head competition between the parties, the risk of lower innovation in products and technology, and the impact of the transaction in related markets such as clearing”.
TMX: Maple Group spokesperson Peter Block commented that "I know it has kind of gone into a quiet period, which makes many people wonder if it's still proceeding, and it is.” However we believe that there are little incentives for Maple to proceed now that LSE’s threat is off Canada. TMX’s stock has fallen to C$40 as Maple’s tender offer deadline approaches on September 30.
TMX: majority of TMX shareholders stated that they would tender their stock to the deal with Maple Group, and commented in a poll that some are frustrated that the TMX board did not take the offer as a friendly bid.
ICE authorized a new $300m share repurchase plan, in addition to the company’s remaining $85m in the previous repurchase authorization. The plan will be implemented in phases through a variety of methods which could include open market purchases or purchases through a Rule 10b5-1 trading plan. CFO Scott Hill said that “we do not believe that our recent share price has reflected our strong fundamentals, and offered us an opportunity to repurchase shares at what we believe are attractive levels.”
ICE filed plans with regulators to conduct transaction in sovereign credit default swaps (CDS) in Latin American countries like Brazil and Mexico. ICE is also still in discussions with UK regulators regarding the trading of European instruments.
CME CEO Craig Donohue said that derivatives which track the price of traditional commodity futures are “parasitic”. He also commented that pending US rules on commodity speculation limits would incentivize banks and hedge funds to abandon futures requiring physical delivery and make cash-settled contracts more attractive.
TSE and OSE may continue merger discussions which started in March in order to come to an agreement on the form any combination might take. According to a Reuters source, TSE has proposed bidding for some or all of its rival’s stock, while OSE prefers a share swap to combine operations so as to remain a traded company.
Provided By: Equity Research Desk, www.erdesk.com