A merger agreement between Japanese bourses Tokyo Stock Exchange (TSE) and Osaka Securities Exchange Co. (OSE) is likely by Tuesday, The Wall Street Journal reports. The tentative deal comes before the planned integration in the fall of 2012 as financial regulators frustrated with the speed of negotiations pressurize the exchanges.
The merger talks have been prolonged due to sharp differences in opinion over the merger ratio. As per the proposal, the TSE’s market value is 1.5 to 2 times that of OSE, whose market value is $1.4 billion. TSE may either buy 66.6 percent or 50.01 percent of OSE to carry out a tender offer that will allow the rival’s shares to remain listed. The two firms are expected to form a holding company and eventually set up several units specializing in areas including cash products, futures trading and self-regulation. TSE president Atsushi Saito will be CEO and OSE president Michio Yoneda COO.
Click here for the story from The Wall Street Journal.