12/09/19

HONG KONG: London Stock Exchange $39bn Proposal Set to be Rejected.

As published on internationalinvestment.com, Thursday September 12, 2019.

The Hong Kong stock market tabled an unsolicited $39bn bid for the London Stock Exchange (LSE) yesterday, but the bid is set to be rejected, according to the Financial Times.

The offer by Hong Kong Exchanges and Clearing (HKEX) valued LSE shares at £83.61, and hoped to combine "the largest and most significant financial centres in Asia and Europe", according to the report, citing the HKEX's offer document.

But a statement from the LSE yesterday called the bid "unsolicited, preliminary and highly conditional", adding it would "consider" the proposal and "make a further announcement in due course".

The statement reaffirmed LSE's commitment to the progress it was making with its own acquisition of data house Refinitiv Holdings, as was announced on 1 August, subject to shareholder approval in November.

The FT cited two sources "close to the board" with both regulatory and technical reasons the deal would be difficult to complete.

According to Reuters, the approach saw LSE shares close up 5.9% on Wednesday while HKEX shares fell 3.4%.