Singapore Exchange may offer $8.3 bln for ASX-source

SINGAPORE, Oct 24 (BestGrowthStock) – Singapore Exchange (SGXL.SI: )
is likely to offer as much as A$48 per share to take over ASX
Ltd (ASX.AX: ), valuing the Australian bourse operator at A$8.4
billion ($8.3 billion), according to a source with knowledge of
the deal.

The source said around 43 percent of the offer, to be
formally made on Monday, will be in cash with the rest in SGX
shares.

“There is a price range being finalised. A$48 is the top of
the range,” said the source.

At that level, the offer reflects a 37 percent premium over
ASX’s last traded price of A$34.96 before shares of both
companies were suspended on Friday.

An SGX spokeswoman was not available for comment, but the
bourse operator said late on Sunday it will make an announcement
on Monday.

ASX was not immediately available for comment.

Both the Singapore Exchange and the ASX are under pressure
to expand and find new business opportunities and counter the
threat of alternative trading systems. ASX has also been looking
at new business opportunities ahead of the end of its monopoly
in 2011. [nSGE69L07U]

(Reporting by Saeed Azhar; Editing by Raju Gopalakrishnan and
David Cowell)

Singapore Exchange may offer $8.3 bln for ASX-source