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LSE TSE merger/sale is off

The Toronto Star said it best;  This was not a merger it was a sale.  


Investors wondered what was the deal logic, eventually the TSE shareholder meeting yielded a rather massive: NO.  Only 54% of proxy votes supported the transaction, well short of the 70% requirement.  The consequence is that the only deal now is a :Pan-Canadian deal via the Maple group, basically Canada's banks will be buying the stock exchange.  


Canadian banks own Alpha and CDS -- the first is a "dark" exchange for institutional investors -- similar to what is available in other jurisdiction.  CDS is Canada's trade clearing and settlement system for eligible securities.  Of course for two banks the cost has been high; BMO and RBC both invested heavily time, energy and reputation to get the LSE/TSE merger off, and they failed -- my guess is that they will soon join the Maple bid...


Another big loser is the CEO of the TSE, his role in the group become "more difficult" to remain polite.  We shall see.   

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