A spokesman for the Maple Group Acquisition Corp. isn’t confirming a report that says the consortium of financial institutions has hit a roadblock in its plan to buy and combine the Toronto Stock Exchange with a smaller, bank-owned trading system.
A Globe and Mail online report cites unnamed sources who say there is a disagreement over how much it would cost Maple to acquire the Alpha trading system and combine it with TMX Group (TSX:X), which operates Canada’s largest stock and derivatives market.
Maple spokesman Peter Block told The Canadian Press the group is in ongoing discussions with Alpha and isn’t commenting on the specifics of the talks.
“I don’t want to confirm anything other than to say that we’re in discussions with Alpha and so everything obviously is on the table and we will hopefully reach an agreeable settlement on all issues,” Block said.
“I don’t know who spoke to The Globe, but I don’t think it was anybody on the Maple side because our view is these discussions are best held between the parties.”
The Globe report says Maple’s target range for Alpha is $100 million to $200 million while the sellers want several times that much — somewhere between $450 million to $600 million.
Representatives for Alpha could not be reached for comment.
The 13-member Maple Group includes some of Canada’s biggest pension managers, banks, investment houses and the country’s largest life insurance firm.
Maple is hoping to eventually acquire and merge the TSX with the CDS clearing house and smaller Alpha exchange in a $3.8 billion deal that would see the group control 80 to 90 per cent of trading in Canada.