TSE has said that the Singapore Exchange should not raise its offer to buy ASX because that would bring further dilution for its shareholders. The chief executive of the Tokyo Stock Exchange has commented that SGX has already enhanced its offer to buy ASX which is the Australian bourse operator. Tokyo Stock Exchange also holds 5 percent stake in the Singapore bourse.

The TSE chief executive Atsushi Saito has also said that, this offer now looks very big and that’s the reason why they can’t be happy as the dilution raises further.

Meanwhile the Singapore Exchange had to face severe pressure to sweeten its US$7.9 billion offer for ASX. ASX is its main rival and this strategy has been adopted to counter opposition to the deal from politicians. It had also helped the buyer to win regulatory approval as well.

Apart from those issues, the deal needs an agreement to improve the 15 percent cap on foreign ownership also. SGX had also agreed to allow the Australian ASX to have same number of directors in the merged company.