FED:Swan blocks ASX takeover proposal

AAP General News (Australia)
04-08-2011
FED:Swan blocks ASX takeover proposal

Treasurer WAYNE SWAN has blocked a proposal to merge Australia and Singapore's stock
exchanges .. saying government policy welcomes foreign investment when it's in the national
interest but this deal doesn't fit the bill.

On Tuesday the Foreign Investment Review Board raised concerns about the proposed 8.4
billion dollar deal.

Today .. the treasurer has said if the merger went ahead .. the ASX would become a
junior partner and there's no clear evidence it would've enhanced the local operation.

He says the takeover won't maximise the benefits of the national superannuation pool
and Australia's reputation as a regional financial services centre.

The proposed takeover would risk seeing jobs and capital moving to Singapore and it
was unlikely to give Australian-listed companies better access to Asian capital markets.

Mr Swan was reluctant to comment about the possibility of the Singapore exchange returning
with a different offer.

But the treasurer remained open-minded about possible future mergers.

AAP saj/mb/jcd/nap/

KEYWORD: ASX (CANBERRA)

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