SINGAPORE, April 25 Singapore's SMRT Corp Ltd
, the operator of the city-state's main rail network,
asked the government on Wednesday about a financing framework
which would reduce its capital expenditure, The Straits Times
SMRT shares shot up on Thursday to close 19 percent higher,
prompting a "trade with caution" alert from the Singapore stock
exchange. The shares were trading 3.3 percent lower on Friday
morning at S$1.175.
A spokeswoman for SMRT declined to comment on the Straits
Times report, which did not cite sources.
SMRT has previously expressed interest in changing to a
financing framework that was introduced by the government in
2010. Under this system, the government would own the assets,
and be responsible for replacing them. This would free SMRT from
having to incur huge capital expenditures on asset replacement.
(Reporting by Andrew Toh; Editing by Edwina Gibbs)