What is meant by a company listing on the Australian Stock Exchange
economics
Description
Tutorial Questions
Page 1 of 6
1. Key Terms
After completing Topic 5, you should be able to explain the following terms and
concepts:
ASX
Insider trading
Listing rules
Operating rules
Market misconduct
Control
Takeover
On-market
Bid
Bidder Statement
Takeover Panel
Off-market
Expert report
Target Statement
2. Learning/Tutorial Activities
The following activities must be attempted prior to the tutorial.
1. What is meant by a company listing on the Australian Stock Exchange?
Research question: What advantages might list offer a company? Are
there any disadvantages?
Tutorial Questions
Page 2 of 6
2. Ozbank, a listed Australian company and one of Australia’s leading banks has
just entered into an agreement to acquire a Chilean Bank on very favorable
terms. Must Ozbank disclose the existence of this agreement to anybody?
Why or why not? (You should assume that Chapter 6 of the Corporations Act,
“Takeovers” is not relevant).
3. Would your answer be different (giving reasons why or why not?) if:
It was a term of the agreement that its existence should be kept
confidential for the time being.
Ozbank is in negotiations with the Chilean Bank but has not made any
firm decision to proceed with the acquisition
Ozbank is in negotiations with the Chilean Bank but has not made any
firm decision to proceed with the acquisition. At the same time the
financial media is full of speculation that Ozbank may be about to acquire
the Chilean bank.
Negotiations have broken down and the acquisition will not proceed. At
the same time, the financial media is full of speculation that Ozbank is
about to acquire an Argentinian bank, which has caused a spike in
Ozbank’s share price.
