Morning Report Friday 14 November 2014
An $8.4 billion merger between the Singapore Exchange (SGX.SP) and the Australian Securities Exchange (ASX) was rejected by Julia ¬Gillard’s Labor government in April 2011. The deal was designed to help the ASX gain a foothold in Asia and let the SGX tap into Australia’s commodities markets. The deal basically valued the ASX at $48 a share through the cash and share offer by the Singapore Exchange, many people believe the deal was knocked back because of political egos. The two companies were looking at saving $30 million a year in costs as they face growing pressure from alternative trading platforms. The ASX is now trading 23% below the bid and the ASX200 has rallied 18%, investors currently have no reason to thank the previous government.
Show more...
