Hedge fund TCI returns as Deutsche Boerse stakeholder, sending its shares higher
TCI's Stake and Impact on Deutsche Boerse
Market Reaction to TCI's Investment
FRANKFURT, May 18 (Reuters) - Deutsche Boerse said on Monday that it welcomed investor TCI taking a stake, a move that marks the hedge fund's return as a large investor in the stock exchange operator.
Deutsche Boerse's shares were up 2.6% in midmorning in Frankfurt after the disclosure on Friday that TCI holds a 5.15% stake in Deutsche Boerse in both shares and derivatives.
TCI's Investment Approach
TCI is a long-term investor and there is no activist role planned, said a person with knowledge of the matter, who did not wish to be identified.
TCI declined to comment.
History of TCI and Deutsche Boerse
TCI, founded by Chris Hohn, was previously an investor in Deutsche Boerse, when it did play an activist role. In 2005, TCI blocked Deutsche Boerse's attempted merger with London Stock Exchange, but in 2016 it endorsed another failed attempt at such a tie-up.
Deutsche Boerse's Response
"We welcome TCI's engagement and are looking forward to continuing our constructive dialogue, just as we do with all our investors," Deutsche Boerse said in an emailed statement.
Performance of Deutsche Boerse Shares
Deutsche Boerse shares have gained more than 12% this year.
(Reporting by Tom Sims, Ludwig Burger and Anousha Sakoui; Editing by Linda Pasquini and Susan Fenton)
