NZSE still misty-eyed over ASX marriage

By SIMON HENDERY

The New Zealand Stock Exchange says its demutualisation, planned for late this year, will make it a more attractive merger target for its Australian counterpart.

Merger talks between the two exchanges broke down in February with the NZSE claiming the deal proposed by the ASX was effectively a straight takeover of the local exchange.

NZSE chairman Simon Allen acknowledged yesterday that it was extremely unlikely either brokers or the public would have accepted the merger proposal as it stood.

But NZSE managing director Bill Foster said the ASX would probably be happy to revisit the issue once the NZSE restructured itself as a limited liability company. Mr Allen agreed, saying the local exchange offered an ideal growth option for the ASX.

Parliament's finance and expenditure committee was expected to report back on the New Zealand Stock Exchange Restructuring Bill in July, and legislation was likely to be passed in September, Mr Foster said.

After that, the exchange's 300-plus members would vote on the issue, and the NZSE could be listed on its own exchange by the end of the year, he said.

The exchange would make its own submissions on the bill, and was keen to see a share cap put in place to prevent a possible takeover of the company.

No single shareholder can own more than 5 per cent of the ASX.