TMX rejects banks' takeover bid

TMX Group's board of directors said Friday it has rejected a $3.6-billion takeover proposal from a Canadian consortium of banks and pension plans.

The owner of Canada's stock exchanges says the bid made by Maple Group Acquisition Corp. is not superior to TMX's planned friendly merger with the London Stock Exchange Group.

TMX also says the rival bid is unlikely to result in a superior proposal.

The stock exchange operator said it made the decision after consulting with financial advisers and outside lawyers.

The Maple bid represents a 24 per cent premium to the value of a proposed merger with the British stock exchange owner.

But the TMX board said the financial value of Maple's offer is inadequate given that the proposal means a change in ownership of TMX.