Jun 30 2011

LSE gains more than 5% after the cancellation of the TMX

Tag: blog, business opportunity, calculation, profitable, tidings — admin @ 4:20 am

The title London Stock Exchange (LSE) was sharply higher in early trade Thursday on the London Stock Exchange after the operator of the latter was canceled at the last minute his proposed merger of $ 3.5 billion with TMX Group.

Around 7:35 GMT, the LSE share jumped from 5.02% to 10.04 pounds, investors felt that the group without TMX, is likely to become prey in the current phase of industry consolidation of stock exchange operators.

The LSE and TMX, the operator of the Toronto Stock Exchange, announced Wednesday the cancellation of their planned merger, which was initiated in February.

In short news broadcast one day before the general meetings were to rule on their merger, both groups said they had realized that the shareholders of TMX would not give them the required majority of two thirds.

Analysts point out that Nasdaq OMX, which has already tried twice to get your hands on the LSE, is the candidate most likely to buy the operator of the London Stock Exchange.