Toronto Stock exchange merger called off

TORONTO - The operators of the Toronto and London stock exchanges have killed a $3.7-billion proposed merger, saying the controversial deal could not garner enough shareholder support to go ahead.

TMX Group (TSX:X) said Wednesday that a majority of proxy votes received ahead of its Thursday annual meeting supported the deal but that was not enough to meet the required two-thirds approval.

TMX Group chief executive Tom Kloet said the company will now review a rival hostile takeover bid by Maple Group Acquisition Corp., a group of 13 major Canadian banks and pension funds.

“We will be evaluating opportunities including that one,” Kloet told a conference call.

The Maple Group said it hopes the way will now be clear for its own bid, which also requires regulatory and shareholder approval.

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