Business
Montreal Exchange releases Management Circular recommending combination with TSX Group
MONTREAL, Jan. 14 /CNW Telbec/ - Montreal Exchange Inc. ("MX") (TSX: MXX) took a key step today t...
About this update from Stampede Drilling Inc.
[{"type":"text","content":"\n\n\n\nMONTREAL, Jan. 14 /CNW Telbec/ - Montreal Exchange Inc. ("MX") (TSX: MXX)\ntook a key step today towards shareholder approval of its agreement to combine\nwith TSX Group Inc. ("TSX Group"), to create the new TMX Group, as announced\nDecember 10, 2007.\n\n\nMX mailed to its shareholders and filed today with regulatory authorities\nits Notice of special general meeting and accompanying Management Proxy\nCircular. The Circular gives notice of the shareholder meeting to be held in\nMontreal on February 13, 2008, for the purpose of considering and voting on\nthe combination. The transaction must be approved by 66 2/3% of the votes cast\nby shareholders.\n\n\nThe Circular outlines in detail the reasons why the Board of Directors of\nMX unanimously recommends that shareholders vote in favor of the transaction.\n\n\nThe Circular discloses information on the process followed by the MX\nBoard of Directors to maximize shareholder value and strengthen Canadian\ncapital markets while ensuring the permanence of MX as Canada's derivatives\nexchange including the associated value-added employment in Montreal. It shows\nthat the proposed transaction is the result of a rigorous process conducted by\nthe Board in carefully considering all available strategic options, including\ntalks with other interested parties, before agreeing to support the\ntransaction.\n\n\nThe Board considered a number of factors in its decision to recommend\nshareholder acceptance. As described in the Summary of the Circular, these\nfactors include:\n\n\n- Increased competitive strengths;\n- Value for MX shareholders through a significant premium and growth\n potential;\n- Benefits for Quebec and Canadian capital markets; and\n- Improved positioning of the new TMX Group in the global exchange\n industry.\n\nThe Board considered substantive business continuity covenants regarding\nthe future of MX operations in Montreal and its continued role as a\nderivatives exchange within the combined group. TSX Group will provide written\nundertakings to the Autorite des marches financiers (AMF) that include\nprovisions to the effect that:\n\n- MX continues to be the Canadian national exchange for all derivatives\n trading and related products;\n- MX operations will remain and continue to develop in Montreal;\n- MX's head office and executive offices will re...