Fell not sold on TSX/LSE merger

TSX / LSE Merger Part 15

Even the wisest of the wise isn’t so sure.

I see in my morning paper that 52% of 111 Ontario public company executives either “support” or “strongly support” the TSX merger with the London Stock Exchange. Notably, only 19% said “they were giving it ‘a great deal’ of their attention.” Perhaps they should.

What’s clear is that none of those execs were at last Thursday’s CFA Institute fireside chat with former RBC Dominion Securities head Tony Fell. There isn’t a more senior Bay Street stateman than he, and I’m told his conversation was a thoroughly enjoyable experience covering more than 40 years in the foxhole.

When asked about the LSE deal, he said (I’m told), that it was a deal looking in the rear view mirror. An idea of the past, that did little for the modern day TSX. Want to do an exchange deal? Think about Australia, for example, given our collective lock on global resource listings (see prior post “Is the LSE the only game in town?” Feb 16-11).

Another very wise owl of the capital markets isn’t sold on the concept. No polling data — where 81% of executives admit to not paying attention — is going to convince Ontario Finance Minister Dwight Duncan that he’s on the wrong track on this one.

MRM