Glass Lewis endorses TMX-LSE merger

TMX Group Inc. today announced that Glass, Lewis & Co., LLC, a leading independent governance analysis and proxy voting firm, has published a report recommending that TMX Group shareholders vote in favour of TMX Group’s proposed merger with London Stock Exchange Group plc (LSEG).

The Glass Lewis report stated: “In light of our approval of the LSE-TMX merger from both a strategic and financial perspective, our consideration of the factors discussed [in the TMX report], and the unanimous support of the board, we believe the proposed merger with LSE is in the best interest of shareholders.”

Maple Group Acquisition Corporation, the consortium of leading Canadian banks, insurers and pension funds, has commented on the report issued this morning by Glass Lewis & Co., a proxy advisory firm based in San Francisco, California.

In its report, Glass Lewis calls Maple’s proposed transaction “strategically compelling” but recommends that TMX Group shareholders should vote for the LSE takeover, largely on the basis that “…[Glass Lewis] believe[s] the LSE-TMX merger has a greater probability of obtaining all necessary regulatory approvals.”

Rival bidder Maple Group Acquisition Corporation, the consortium of leading Canadian banks, insurers and pension funds, said the Glass Lewis report was severely flawed, most notably because it ignored regulatory requirements that limit any single TMX shareholder to 10%.

TMX Group will hold an Annual and Special Meeting of shareholders to approve the merger agreement and other resolutions on June 30, 2011 at 10:00 a.m. (ET). The meeting will be held at the Design Exchange, 234 Bay Street, Toronto.

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