…to prevent the management from pushing through the “merger” of our beloved Singapore Exchange with the Australian Stock Exchange — at any cost!
In this regard, I am delighted to read a Reuters report that the Tokyo Stock Exchane has rapped the knuckles of the executives of the SGX and reminded them that buying the Australian Exchange isn’t a do or die affair.
Rather, given the way SGX’s share price has collapsed since unveiling its plans, the propsed merger is in my view a do-n-die move: do it — especially if SGX against all common sense raises the bid price — and it’s a guaranteed one-way ticket to oblivion.
For shareholders like me, who bought into SGX at lowish prices, we have been seeing our paper profits evaporate day by day, week by week, month by month.
For the TSE, which is sitting on huge paper losses — its 5% was bought at $10 per share, if I remember correctly — the pain must be excruciating.
If the still-new SGX CEO doesn’t understand the language of the sagging SGX share price, mayb SGX shareholders should consider starting a ginger group.
This can then tell him in unmistakeable words that not only is the merger as initially proposed a baaaaad thing, but if the greater say given to the Australian side in the enlarged entity should be further sweetened with an even higher price for ASX shares, then it would also be the most dumb-ass move ever made by a Sg entity!