DealZone

Deals wrap: Maple’s hostle bid for TMX may change exchange landscape

The London Stock Exchange faced an increasingly bitter battle for control of Canadian peer TMX Group after rival bidder Maple Group took its higher offer directly to shareholders.

Maple Group of Canadian banks and pension funds hostile $3.7 billion bid for TMX hopes to galvanize simmering nationalistic opposition to a foreign takeover of the country’s main exchange.

While the LSE is countering with the argument that its takeover would give TMX a launching point to the international stage, TMX shareholders’ decision could determine not only the fate of TMX but also that of the LSE.

Scooping up TMX would likely make the LSE too large to be a realistic takeover target for rivals such as U.S. exchange Nasdaq OMX and the Singapore Exchange, both of which have seen their merger plans dashed in recent weeks.

If it fails, it risks being left a sitting duck as predators circle.

In other news, Freescale Semiconductor, bought by buyout firms near the peak of the private equity boom in 2006, raised a less-than-expected $783 million in its initial public offering.

Deals wrap: What’s next for media?

MARKETS-CANADA-STOCKS/The London Stock Exchange is to buy the owner of the Toronto Stock Exchange, TMX Group, in an all share deal that will create a mining-dominant exchange at a time of rising commodity prices.

In a long range forecast for the media sector, investors should expect radical changes and lots of M&A, The Washington Post reports.

Porsche is about to hit the road with a 5 billion euro ($6.8 billion) capital increase, paving the way for a planned merger with Volkswagen, two people familiar with the matter said.

DealZone Daily

Nomura (8604.Tis to buy Tricorn Partners, a London corporate finance boutique. The Japanese bank is making the acquisition to beef up its corporate broking business. It is currently corporate broker to eight British companies including Tesco. The value is not disclosed.

Abu Dhabi’s sovereign fund is serious about mitigating losses it faces from its purchase of securities in Citigroup (C.N) in 2007. Abu Dhabi Investment Authority has filed an arbitration claim against the US bank alleging  misrepresentation. It wants Citigroup to rescind on the investment agreement or pay more than $4 billion in damages.

In Australia, BHP Billiton (BHP.AXoffers to buy Queensland’s coal freight business. The state government of Queensland last week announced plans to float the business, a move which wasn’t popular with miners and rival rail groups who had expected the business to be separated.

IPO by U.K. buyout firm an ocean apart

It’s enough to make Leon Black, Henry Kravis and Stephen Schwarzman jealous.

UK-based buyout firm Resolution, founded by entrepreneur Clive Cowdery, has not only launched a rare IPO – it raised £600 billion ($889 million) last week- but the deal enjoyed a 15 percent “pop” in its trading debut on the London Stock Exchange Wednesday.

The buyout fund will target U.K. insurance and asset management companies in deals in the range of £3 to 5 billion. And that may be part of why the IPO did well: The U.K. insurance sector has underperformed the market with companies contending with lower valuations.