It was the latest blow to the credibility of the Australian Securities Exchange (ASX). This time, the nation’s stock exchange mixed up two company names in an error that briefly wiped A$400 million off the market value of our third biggest telco, TPG Telecom.
On Wednesday morning, the ASX mistakenly linked TPG Telecom Limited to a market announcement involving a completely different company — TPG Capital Asia. This US-owned, private equity giant just revealed a A$651 million takeover of the software firm Infomedia.
The ASX’s error led investors to believe TPG Telecom was making an acquisition outside its sector. Automatic trading algorithms also kicked in. Within minutes, TPG Telecom’s stock plunged nearly 5% before the ASX halted trading. The damage was done.
