The deal between SGX and ASX was that the ASX’s shareholders would get top dollar for their shares. In return, SGX would get control over the joint entity.
It is clear that both sides tot that the ASX would be able to sell the deal to the Foreign Investment Review Board, the Treasury and Parliament. It clearly ain’t so.
So the deal’s off and SGX is S$20mn poorer, SGX is stuck with organic growth. But its shown that its track record in this field is medocre at best. Hence its willingness to pay top dollar for ASX,
Time to short the stock?