TORONTO (Reuters) – Talks between Toronto Stock Exchange operator TMX Group (X.TO: Quote, Profile, Research, Stock Buzz) and a consortium of Canadian financial heavyweights could result in the former adversaries reaching a friendly deal that would help overcome key competition hurdles.

The TMX board said on Thursday it authorized official discussions with Maple Group Acquisition Corp, nearly a month after the London Stock Exchange (LSE.L: Quote, Profile, Research, Stock Buzz) abandoned a friendly takeover offer that failed to generate enough shareholder support.

“If TMX and Maple got together, if they were to agree on something, whatever they agree on would probably have a better chance of passing competition reviews in Canada,” said Ed Ditmire, an analyst with Macquarie Capital in New York.

The Competition Bureau is reviewing Maple’s offer, which includes plans to integrate the Toronto Stock Exchange with the Alpha Group alternative trading system (ATS), the TSX’s largest domestic competitor.

The move would result in the combined entity controlling more than 80 percent of Canadian stock trading and has raised concerns it would give TMX-Alpha too much power over listing prices.

Earlier this week, the bureau requested more information to complete its review of the proposed deal.

“It is inconceivable it should be an issue for the competition bureau, given other (ATS) players such as Chi-X and PureTrading could fill any void,” said independent analyst Chris Damas.

TORONTO, July 22 (Reuters) – Talks between Toronto Stock Exchange operator TMX Group (X.TO: Quote, Profile, Research, Stock Buzz) and a consortium of Canadian financial heavyweights could result in the former adversaries reaching a friendly deal that would help overcome key competition hurdles.

The TMX board said on Thursday it authorized official discussions with Maple Group Acquisition Corp, nearly a month after the London Stock Exchange (LSE.L: Quote, Profile, Research, Stock Buzz) abandoned a friendly takeover offer that failed to generate enough shareholder support. [ID:nN1E76K29L]

“If TMX and Maple got together, if they were to agree on something, whatever they agree on would probably have a better chance of passing competition reviews in Canada,” said Ed Ditmire, an analyst with Macquarie Capital in New York.

The Competition Bureau is reviewing Maple’s offer, which includes plans to integrate the Toronto Stock Exchange with the Alpha Group alternative trading system (ATS), the TSX’s largest domestic competitor.

The move would result in the combined entity controlling more than 80 percent of Canadian stock trading and has raised concerns it would give TMX-Alpha too much power over listing prices.

Earlier this week, the bureau requested more information to complete its review of the proposed deal. [ID:nL3E7II3A4]

“It is inconceivable it should be an issue for the competition bureau, given other (ATS) players such as Chi-X and PureTrading could fill any void,” said independent analyst Chris Damas.

TORONTO, July 20 (Reuters) – The Canadian dollar held near 2-1/2 month highs against the U.S. dollar on Wednesday after the Bank of Canada sounded more hawkish than expected at its policy meeting on Tuesday, prompting some investors to price in rate hikes sooner rather than later.

The currency added to its gains after the central bank released its Monetary Policy Report on Wednesday morning. It eased modestly following Governor Mark Carney’s press conference, when the bank signaled it was in no rush to normalize rates. [ID:nN1E76J0N0]

“Yesterday, I think the market was a bit surprised by how hawkish the Bank of Canada sounded in their communique,” said Charles St-Arnaud, Canadian economist and currency strategist with Nomura Securities International in New York.

“Today, the Monetary Policy Report only confirmed and gave a bit more detail on the outlook, on the quarterly forecast,” St-Arnaud said. He added that any possible rate move later in the year would be “conditional on what risk is doing, what the tension in Europe’s doing.”

At 12:40 p.m. (1640 GMT), the currency CAD=D4 stood at C$0.9483 to the U.S. dollar, or $1.0545, up from Tuesday’s North American close at C$0.9508 to the U.S. dollar, or $1.0517. Earlier, it rose as high as C$0.9457 to the U.S. dollar, or $1.0574, its best level since May 2.

“There was an upsize in terms of inflationary expectations by the bank in the short term, but really the market sentiment with respect to the Canadian dollar was changed in conjunction with yesterday’s policy guidance,” said Jack Spitz, managing director of foreign exchange at National Bank of Canada.

Spitz said external factors — including crude prices and equity market sentiment — remained influential drivers, in addition to the central bank’s comments.

TORONTO (Reuters) – A Canadian consortium would rather woo TMX Group then press forward with its hostile takeover bid, but it says it will do whatever it takes should talks with the Toronto Stock Exchange operator break down.

Maple Group Acquisition Corp says it would like to strike a friendly deal with TMX and believes its C$3.8 billion ($3.96 billion) offer in cash and stock is compelling.

The 13-member consortium says it has no plans to change its $50-a-share bid while it pursues a three-track strategy of engaging TMX management, soliciting shareholders and working with competition authorities to win their approval.

“There haven’t been formal, sit-down negotiations across the table from the (TMX) board, but there’s been information exchanged. There’s been informal discussions through advisers and others,” said Maple spokesman Peter Block.

“We are open to working with the TMX and we hope to complete a transaction with TMX support, while being fully committed to following through on our offer,” Block said, who added that talks with investors have gone well.

The TMX takeover battle took a decisive turn late last month when the London Stock Exchange Group abandoned a friendly proposal to combine the two companies because of insufficient shareholder support.

The LSE deal was announced in February, around the same time Germany’s Deutsche Boerse AG unveiled its $9.7 billion bid to take over NYSE Euronext, operator of the New York Stock Exchange. Shareholders approved that deal on Thursday, taking a big step toward the creation of the world’s largest exchange operator.

TORONTO (Reuters) – Canada’s economic growth outlook for the rest of this year and next has dimmed, hurt by a deepening slowdown in the United States, its biggest trading partner, the latest Reuters poll of economists showed.

The hit to gross domestic product (GDP) will be dramatic in the quarter just passed, according to the survey of 21 economists taken in the past week. GDP growth is expected to slow to 1.5 percent, annualized, from 3.9 percent in January-March.

That is a huge downgrade from the 2.7 percent second quarter growth rate forecast in a poll just three months ago and shows just how sharp the slowdown has been over that short period. Growth stalled in April, largely due to a slump in auto production.

Economists are optimistic the economy will rebound, however, with the consensus calling for 2.9 percent annualized growth in the current quarter, barely changed from expectations in April, and 2.8 percent as 2011 draws to a close.

A worsening sovereign debt crisis in Europe, which this week threatened to ensnare a G7 nation, Italy, as well as softening demand from the United States — by far Canada’s biggest export market — has darkened prospects for the economy.

“Our major trading partner, the U.S., lost a good bit of traction through the spring and even early summer, with the slowing job growth the latest testament to that,” said Sal Guatieri, a senior economist with BMO Capital Markets.

“Of course that will undermine Canadian exports.”

TORONTO, July 13 (Reuters) – Canada’s sale of two-year government bonds met with firm demand on Wednesday, though the bid-to-cover ratio was the second lowest this year.

The C$3.5 billion ($3.65 billion) auction produced an average yield of 1.576 percent, up from 1.572 percent at the last two-year bond auction in June.

“It came about half a basis point through where it was trading in the pre-market, so relatively firm, relatively well-received. It continued to trade OK in the aftermath as well,” said Mark Chandler, head of Canadian fixed income and currency strategy at RBC Capital Markets.

“It continues the string of auctions that we’ve seen of late which are well received, well attended, relatively good bid-to-cover ratios. Generally the bond market, certainly at the front end, has done well in the last several weeks.”

There was more than C$8.76 billion in bids from primary dealers, resulting in a bid-to-cover ratio of 2.502, the measure of investor demand. Chandler said Canadian auctions were typically well-contained within the 2.5 range.

“It’s not always the most important metric if you’re trying to illustrate the success of an auction,” Chandler said.

The auction’s success came even as bond prices slipped across the curve with investors easing back into riskier assets, following a choppy week in markets on concerns the sovereign debt crisis in Europe could spread, and ongoing softness in the U.S. economy.

TORONTO, July 10 (Reuters) – Canada’s largest stock market operator will likely succumb to Maple Group’s C$3.8 billion ($3.96 billion) takeover bid as Bay Street’s bank “guard dogs” scare off white knights and shareholders opt for hard cash over promises of growth.

While some markets watchers speculate a rival bid could still surface for TMX Group (X.TO: Quote, Profile, Research, Stock Buzz), operator of the Toronto Stock Exchange, analysts and fund managers say few players can match the financial firepower of the Maple Group consortium.

The group, which includes some of Canada’s biggest bank and pension funds, became the sole bidder for TMX following the collapse last month of the London Stock Exchange’s (LSE.L: Quote, Profile, Research, Stock Buzz) friendly takeover offer.

“Any party would find negotiating a combination with the TMX to be incredibly tricky with the kind of guard dogs of the banks in front of them,” said Ed Ditmire, an analyst at Macquarie Capital in New York.

While Maple was born as an attempt to block an LSE takeover of TMX, the LSE’s departure does not seem to have weakened its resolve.

Luc Bertrand, chief representative of Maple, told Reuters on July 6 the group hopes to complete its acquisition of TMX on friendly terms, but is “fully committed” to getting the deal done. [ID:nN1E765164]

Bertrand also said Maple’s existing hostile bid is “as strong as you can possibly imagine”, suggesting it has little fear of a foreign contender like Nasdaq .OMXC20 stepping in.

TORONTO, July 6 (Reuters) – Maple Group Acquisition Corp is confident its current bid for Toronto Stock Exchange operator TMX Group (X.TO: Quote, Profile, Research) will get both shareholder and regulatory support, the consortium’s chief representative said.

London Stock Exchange’s (LSE.L: Quote, Profile, Research) rival friendly bid for TMX collapsed a week ago when it became apparent it did not have sufficient shareholder support to reach the two-thirds threshold needed for it to go through.

“Now that we’ve gone over the very important step of not having the LSE proposal proceed … we’re of the view that the 70 percent (shareholder support) is, in terms of reaching it, very realistic,” Maple’s chief representative, Luc Bertrand, told Reuters on Wednesday.

TMX shareholders have until Aug. 8 to tender their shares to Maple’s C$3.8 billion ($3.94 billion) offer.

The bid from Maple, a consortium of Canada’s largest banks and pension funds, is conditional on getting regulatory clearance to integrate the Toronto exchange with its largest competitor, alternative trading platform Alpha, which is already controlled by Canadian banks. Critics say the combination would give Maple too much control over the market.

Bertrand, 56, said Maple is working with Canada’s Competition Bureau on its submission and that it has a very strong case.

Bertrand, who is also vice-chairman of Maple member National Bank of Canada (NA.TO: Quote, Profile, Research), indicated that Maple does not believe it needs to raise its bid again to get more shareholders onside.

TORONTO (Reuters) – Maple Group Acquisition Corp is confident its current bid for Toronto Stock Exchange operator TMX Group (X.TO: Quote, Profile, Research, Stock Buzz) will get both shareholder and regulatory support, the consortium’s chief representative said.

London Stock Exchange’s (LSE.L: Quote, Profile, Research, Stock Buzz) rival friendly bid for TMX collapsed a week ago when it became apparent it did not have sufficient shareholder support to reach the two-thirds threshold needed for it to go through.

“Now that we’ve gone over the very important step of not having the LSE proposal proceed … we’re of the view that the 70 percent (shareholder support) is, in terms of reaching it, very realistic,” Maple’s chief representative, Luc Bertrand, told Reuters on Wednesday.

TMX shareholders have until August 8 to tender their shares to Maple’s C$3.8 billion ($3.94 billion) offer.

The bid from Maple, a consortium of Canada’s largest banks and pension funds, is conditional on getting regulatory clearance to integrate the Toronto exchange with its largest competitor, alternative trading platform Alpha, which is already controlled by Canadian banks. Critics say the combination would give Maple too much control over the market.

Bertrand, 56, said Maple is working with Canada’s Competition Bureau on its submission and that it has a very strong case.

Bertrand, who is also vice-chairman of Maple member National Bank of Canada (NA.TO: Quote, Profile, Research, Stock Buzz), indicated that Maple does not believe it needs to raise its bid again to get more shareholders onside.

TORONTO, July 6 (Reuters) – Maple Group Acquisition Corp is confident it will get both shareholder and regulatory support for its C$3.8 billion ($3.94 billion) takeover bid for Toronto Stock Exchange operator TMX Group (X.TO: Quote, Profile, Research).

“Now that we’ve gone over the very important step of not having the LSE proposal proceed … we’re of the view that the 70 percent (shareholder support) is, in terms of reaching it, is very realistic,” Maple’s chief representative, Luc Bertrand, told Reuters.

He said the consortium of banks and pension funds is working with Canada’s Competition Bureau on its submission and that it has a very strong case.

Bertrand, who is also vice-chairman of Maple member National Bank of Canada (NA.TO: Quote, Profile, Research), indicated that Maple does not believe it needs to raise its bid again to get more shareholders onside.

“This is as strong a bid as you can possibly imagine, so we’re very comfortable with our proposal and we think it’s fair to shareholders.”

($1=$0.97 Canadian)

(Editing by Jeffrey Hodgson)