By GEOFF SENESCALL
A merger with the Australian Stock Exchange (ASX) could be a year away, members of the New Zealand exchange were told at yesterday's annual meeting.
"Any transaction would probably not be completed before the second quarter of 2001 at the earliest," said advisers to the local exchange, UBS Warburg.
But a heads of agreement could be in place by the end of the year, after which proposals would be put to a special meeting of members.
New Zealand Stock Exchange chairman Eion Edgar said the board was satisfied with progress on the potential merger discussions with the ASX.
"We are working closely together on a range of issues relating to a possible merger or other association, but it has to be said there are many very complex issues which need to be worked through, and for that reason any merger proposal to be put to members is still some way off.
"We are hopeful that the substantive issues can be resolved in the next three or four months, with a formal proposal going to members early in the New Year."
The meeting also confirmed the appointment of Simon Allen, of ABN Amro, as the new chairman, taking over from Mr Edgar, of Forsyth Barr.
Two board incumbents, Neil Craig and Campbell Stuart, were also re-elected, snuffing out a challenge from two other members.
In his parting speech, Mr Edgar said that while the merger had thrown up complexities, it had also highlighted similarities. "The compliance rules between the two exchanges are pretty harmonious with, for example, the disclosure requirements of the listing rules being very similar."
Enabling legislation might be required to facilitate a demutualisation.
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