Banks seek help for new TMX bid: report

The consortium of Canadian banks trying to buy the company that owns the TSX are looking for up to four new members to join their team for a new offer, a report said Tuesday.

Citing a person familiar with the situation, the Wall Street Journal reported Tuesday that Maple Group Acquisition Corp. — which includes TD Bank, CIBC, Scotiabank, National Bank and five major pension funds including the Canada Pension Plan — has approached a number of other Bay Street names in an attempt to bolster their $3.6-billion bid to buy TMX Corp.

The group's bid for the owner of Canada's largest stock exchange was rebuffed by management at TMX, despite the fact that it came at a significant premium to what TMX Corp. shares are currently worth on the open market.

That's because TMX is in the midst of trying to merge with the London Stock Exchange Group, a deal management at both companies favour. That deal has cleared a number of regulatory hurdles, but a key shareholder vote on the issue is coming up on June 30.

Getting shareholders to agree to what is, in cash terms, an inferior bid, could prove difficult. As such, Maple has stepped up its efforts, trying to woo Bay Street firms GMP Capital Inc., Dundee Capital Markets Inc. and Desjardins Financial Group to join the fray, the Journal reported.

The new entrants would receive seven per cent of the TMX for participating, while the existing Maple shareholders would see their stakes drop. The public float of TMX shares would remain at 40 per cent.

All three of the of the above-named companies, in addition to Maple Group, did not immediately respond to requests for comment when contacted by CBC News.

According to the report, Maple hopes that beefing up the team will add credibility to the bid in the eyes of shareholders.