SGX: An approval too far?

In Uncategorized on 21/02/2011 at 5:53 am

Taiwan, HK, Korea draw unloved Singapore-listed Chinese firms while SGX does its version of Operation Market Garden, a military fiasco, immortalised in the movie “A Bridge Too Far”.

The plan required the seizure of bridges across three rivers and several more canals by airborne forces while armoured divisions made a dash along the road linking all the bridges.  All this while fighting the Germans, If the plan worked, the Allies would outflank the German’s Siegfried Line by driving into the Ruhr, Germany’s industrial heartland.

The operation failed because it  required all the main bridges to be captured and for the armoured divisions to overcome the German defences swiftly. But the terrain was ill-suited for armoured warfare.

Sounds like SGX”s bid for ASX. The takeover must be cleared by the Foreign Investment Review Board, the Treasurer and then enabled by legislation.  Taz like seizing all the bridges.

As to bad terrain, the Greens and independents don’t like it.. One reason they don’t like it is because the Singapore government is itself a shareholder in SGX through its investment arm, Temasek (it will own almost 15%  of the merged group).

Finally, there is the fact that the Oz government government has singled out sovereign investments in Australian companies as a concern.

So I’m glad to hear that SGX has other plans if its plans to takeover ASX fails.

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