The Merger of the TSX Group and the Montreal Exchange

內容大綱
In mid-October 2007, the chief executive officer (CEO) of the TSX Group was contemplating his strategic options. In March 2009, a decade-long non-compete agreement between the TSX Group and the Montréal Exchange would expire. Under this agreement, the former had been the sole exchange for trading senior equities in Canada while the latter had the monopoly on exchange-traded derivative contracts. Afterwards, both exchanges would be able to compete directly in their respective businesses. The CEO believed a merger between the two Canadian exchanges made strategic sense, especially given the current merger wave globally, but his counterpart had rebuffed his advances. What was the best way to bring his rival to the bargaining table? Should the TSX Group make a hostile bid? How much of a premium for shares should be offered?
學習目標
This case is designed for both an introductory and an advanced finance or strategy course at the undergraduate or MBA level. It provides an opportunity to:<br><ul><li>Review the factors that lead to merger waves and to understand how mergers and acquisitions can be used as a tool to meet a company’s strategy.</li><li>Discuss the strategy behind a merger and to debate the merits of a friendly versus a hostile offer. </li><li>Discuss how much of a premium to offer for the target company's shares, with details provided on precedents. </li><li>Understand the importance of leadership and strategic fit between management teams.</li><ul>
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