If the good folks Down Under in charge of the Australian Stock Exchange were to show our Singapore Exchange’s super thick-skinned management the door for daring to seek the hand of their far from dazzling ditzy Waltzing Matilda, I’d be the first among the majority of SGX shareholders to joget.
I’m getting ready to do the dance of joy because the latest news from the Sydney Morning Herald as summarised by Reuters (see report reproduced below) is that the Kangaroo establishment is going to kill the deal stone dead.
As I see it, it’s not so much a snub but a well-aimed and much needed knock on the head for those at SGX pushing for the deal.
Can’t those running our exchange read what the SGX share price has been and is still saying about the deal? If they can’t even read what’s as obvious as the noses on their faces, then should they be in charge of something which is supposed to read volumes, if not whole libraries, just by looking at the share price?
All right, I’ve had my say.
Should Australia contrary to expectations give the SGX proposal the green light, I will definitely be among the SGX shareholders north of the equator who will vote not with our feet but with our shares at the SGX EGM to consider the deal.
I hope thousands will join me to say the merger is a baaaaad thing!
Mar 19, 2011
SGX’s bid for ASX falters on govt, regulator opposition
The Foreign Investment Review Board was unlikely to support SGX’s cash and share bid for the Australian Securities Exchange but even if it did, the Treasury, whose approval is also necessary, would stop the deal, the paper quoted a senior government source as saying on Saturday.
‘If (the FIRB) doesn’t kill it, we will,’ the source told the paper.
In addition, the Nationals, a key party in the conservative opposition Coalition, would ‘ferociously’ oppose the deal, Barnaby Joyce, a top party official, told the paper.
The deal, first announced in October, has already been under pressure from Australian politicians – whose approval is necessary to lift a 15 per cent shareholder cap – as it was seen as ceding control over a key national institution and a de-facto monopoly.
The SGX last month improved the terms of its offer but it is still far from a merger of equals, as urged by several key political leaders, and SGX chief executive Magnus Bocker earlier this month told Reuters there would be no more incentives to win control of ASX. — REUTERS