THE ASX took its campaign to win support for the takeover by the Singapore exchange to the Coalition yesterday.
The moves comes as market confidence in the deal continues to wane.
Opposition Treasury spokesman Joe Hockey held to his view that the deal "may put at risk Australia's reputation as a regional financial centre" after he and assistant spokesman Mathias Cormann met exchange chairman David Gonski and chief executive Rob Elstone.
Mr Hockey said the ASX had agreed to provide the Coalition with further information about the deal and he would reserve judgment.
"This is a decision for the government, and the government needs to show Australians how it is in the national interest for the ASX to be purchased by the Singapore exchange," he said. ASX shares fell 2 per cent yesterday to trade at 20 per cent below the Singapore exchange's offer price, with investors believing political opposition will make the deal difficult.
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Qantas chairman Leigh Clifford called for politicians and investors to take a longer-term perspective on the transaction.
"I think a bit of xenophobia's creeping into the debate, unfortunately. There are arguments for and against it," Mr Clifford said.
The response to the deal remains equivocal in financial markets. While the Financial Services Council has said there are no national interest reasons for opposing it, the chief executive of the Stockbrokers Association of Australia, David Horsfield, said yesterday it was too soon to come to a firm view about the deal, which concerned a "strategic asset to Australia and the economy".
"It seems to be a takeover rather than a merger when you see 15 directors and only four are from the ASX. Maybe that is something that the Foreign Investment Review Board will look at more closely," Mr Horsfield said.
The Australian Council of Superannuation Investors chief executive Ann Byrne said the key issue would be the maintenance of market integrity.
The director of the Australian Centre for Financial Studies, Deborah Ralston, said the deal would enhance Australia's position in regional markets and should be approved. It could increase the size of the market, provide more diversified sources of funding and lower costs.
More airlines trim or dump first-class seatsStocks end firmly higher on banks, miners
