London Stock Exchange rejects Hong Kong's US$39b takeover offer
[LONDON] London Stock Exchange (LSE) has rejected the US$39 billion takeover offer from the Hong Kong Exchange (HKEX), opting to stick with its planned purchase of data and analytics group Refinitiv.
The LSE told HKEX in a letter that it had fundamental concerns about key aspects of the proposal and that HKEX's relationship with the Hong Kong government would "complicate matters".
"Accordingly, the board unanimously rejects the conditional proposal and, given its fundamental flaws, sees no merit in further engagement," the London bourse said in a statement.
LSE shares were trading up 1.3 per cent at 7,352 pence after the statement, little changed from earlier levels.
HKEX made its surprise offer on Wednesday, just two days after its officials travelled to London to present it to LSE chief executive David Schwimmer for the first time.
It has been coolly received by shareholders so far, though analysts expect the Asian exchange to return with an improved proposal and could go hostile, meaning a direct appeal to LSE shareholders.
In its letter, the LSE said that HKEX's assertion that implementing the deal would be swift and certain "is simply not credible".
REUTERS
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Banking & Finance
Japanese yen slides back towards 34-year low after brief spike
China’s Bank of Communications Q1 profit rises 1.44%
HSBC’s private bank shuts independent asset management business in HK, Singapore
Nomura Q4 net profit jumps almost eight-fold on retail income surge
Rescue pup to meme star: the real-life ‘Dogecoin’ dog
Money laundering accused Zhang Ruijin slapped with 5 more charges days before scheduled guilty plea