Good evening,

It’s been more down than up for the ASX in the past few years. That’s not the index, but the market operator, which seriously bungled the roll-out of a crucial upgrade of clearance and settlement systems, resulting in more than casual regulatory scrutiny.

That, and generally poor conditions for new listings since the COVID-19 pandemic, has resulted in a weak share price. Over five years, in fact, it’s down some 14 per cent.

But ASX Limited is still attractive to someone, it seems. Street Talk can reveal a consortium of superannuation funds, including industry giants and major shareholders AustralianSuper and UniSuper, seriously considered lobbing a takeover bid only late last year.

In a way, the ASX fits the profile. It is an essential piece of infrastructure and has a quasi-monopoly position, a description that would fit Sydney Airport, for instance, which went private in a$23.6 billion takeover led by superannuation-backed IFM Investors.

In the end, an offer was not made. Had it been tabled, sources said Barrenjoey’s bankers were poised to act in defence. Presumably, the super funds would have engaged at least Macquarie.

While the identity of the other super funds in the heavyweight cohort is unclear, it is worth pointing out that fellow domestic superannuation fund, Aware Super, holds a small, below-substantial stake in the ASX. UniSuper sits on a 14.15 per cent shareholding, according to Bloomberg, while AustralianSuper owns 8 per cent of the company.

AustralianSuper, UniSuper and the ASX declined to comment.

Read the full story tomorrow and more on the Street Talk page.

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Selling in Australian shares accelerated on Thursday as investors worried about the impact of rising living costs on retail sales and the banks’ lending books.

Click here for the latest equity market wrap.