Deutsche Boerse gets narrow approval for LSE tie-up

Shareholders in Deutsche Boerse approved the German stock exchange operator's bid to merge with its London counterpart by a narrow margin, the company said on Friday.

Investors holding 63.7 percent of the company -- just over the 60-percent threshold -- had accepted the offer to convert their shares into shares of the new company by the deadline of midnight on July 26, Deutsche Boerse stated in a legal filing.

The Frankfurt-based firm had confirmed on Tuesday that the 60-percent hurdle had been cleared, but had previously not stated by how much.

"We are very pleased that the majority of our shareholders believe in the compelling strategic rationale of our proposed merger," chief financial officer Gregor Pottmeyer said in a statement.

Under the terms of the deal, shareholders in the Frankfurt stock exchange will control 54.4 percent of the new holding company's capital, while LSE shareholders will end up with 45.6 percent.

LSE shareholders already voted overwhelmingly in favour of the tie-up earlier in July.

Investors who did not accept by midnight on Tuesday now have until August 12 to reconsider, Pottmeyer said.

"We are confident that we will see significantly higher acceptance levels at the end of the two additional weeks," he added.

Company bosses had the threshold for shareholder support lowered from 75 percent to 60 percent earlier this month to smooth the deal's path, as doubts emerged following Britain's late June vote to leave the European Union.

Uncertainty remains over where the merged firm will be based, with media reports suggesting politicians and regulators are against a joint headquarters in London -- the original plan.

Frankfurt or a "neutral" European city such as Amsterdam are now more likely candidates, German financial daily Handelsblatt reported earlier this month.

Deutsche Boerse, which operates the Eurex derivatives exchange and the Clearstream clearing house as well as the Frankfurt stock exchange, and LSE, which operates the London and Milan stock markets, have been seeking a merger since March.