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Revised SGX-ASX deal fails to ease political concerns

Published 02/17/2011, 12:58 AM
Updated 02/17/2011, 01:00 AM

CANBERRA, Feb 17 (Reuters) - The Singapore exchange's revised offer for Australian bourse operator ASX still faces major political hurdles in Australia after key independent lawmakers on Thursday continued to voice concerns about the $7.9 billion takeover.

The Singapore exchange on Tuesday amended its offer for ASX, part of a global wave of exchange consolidation, with changes designed to help it overcome political concerns over a deal which will needs both government and parliamentary approval.

Key independents and Greens lawmakers contacted by Reuters on Thursday said the revised offer has not changed their views.

"ASX is not just any company. It is an iconic Australian financial organisation, the sale of which would compromise our financial sovereignty," independent Andrew Wilkie told Reuters on Thursday, in line with his stand before the revised offer.

Parliament must vote to remove a 15 percent cap on individual holdings in the ASX in order for the deal to succeed.

Independent Senator Nick Xenophon, who also has concerns about the takeover, said he still wanted to send the issue to a Senate inquiry to examine the full implications for Australia.

Western Australian independent Tony Crook, who normally votes with the opposition, said he also remained opposed to the deal at this stage. He also backed a parliamentary inquiry.

Opposition treasury spokesman Joe Hockey earlier this week said he would not form a view on the deal until the government had made its decision.

The government has refused to comment on the revised offer.

(Reporting by James Grubel; Editing by Mark Bendeich)

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