ASX sees logic of Singapore rival's bid
By Michael Smith |
March 25, 2011, Friday
|
Print Edition
Print Edition
AUSTRALIAN bourse operator ASX says it continues to believe in the business logic of a proposed US$7.6 billion takeover by Singapore rival SGX, and also sees a need to take part in global bourse consolidation.
The ASX made the comments in a letter to shareholders released yesterday as it ramps up lobbying efforts to try to overcome political opposition to the deal, which comes amid a wave of bourse consolidation globally.
"The ASX board maintains a strong belief in the need to participate in global exchange consolidation and in the business logic of the announced combination with Singapore," it said.
The deal is under review by the Foreign Investment Review Board, which has up to 120 days to make a decision.
SGX's bid for ASX, announced in October, has been under pressure from Australian politicians - whose approval is necessary to lift a 15 percent shareholder cap - as it was seen as ceding control over a key national institution and a de-facto monopoly.
Peter Elston, a strategist at Aberdeen Asset Management Asia said he senses it will go ahead once politicians realize they are not putting a regulatory function in foreign hands.
The ASX made the comments in a letter to shareholders released yesterday as it ramps up lobbying efforts to try to overcome political opposition to the deal, which comes amid a wave of bourse consolidation globally.
"The ASX board maintains a strong belief in the need to participate in global exchange consolidation and in the business logic of the announced combination with Singapore," it said.
The deal is under review by the Foreign Investment Review Board, which has up to 120 days to make a decision.
SGX's bid for ASX, announced in October, has been under pressure from Australian politicians - whose approval is necessary to lift a 15 percent shareholder cap - as it was seen as ceding control over a key national institution and a de-facto monopoly.
Peter Elston, a strategist at Aberdeen Asset Management Asia said he senses it will go ahead once politicians realize they are not putting a regulatory function in foreign hands.
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