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HONG KONG (Reuters) - Hong Kong Exchanges and Clearing Ltd (HKEX) (0388.HK) shares fell more than 3% on Thursday after the bourse unveiled a $39 billion takeover approach to the London Stock Exchange Plc (LSE) (LSE.L) on Wednesday.
HKEX shares fell as much as 3.7% in opening deals, while the benchmark Hang Seng Index .HSI was up 0.1%, suggesting investors are concerned about the financial merits of the deal.
The proposed deal is aimed at creating a combined group better able to compete with U.S. rivals such as Intercontinental Exchange Inc (ICE.N) and CME Group inc (CME.O). It is contingent on LSE abandoning a deal to acquire financial information provider Refinitiv.
HKEX, whose main shareholder is the Hong Kong government, said its 31.6 billion pound ($38.97 billion) cash-and-share transaction proposal represented a 22.9% premium to the LSE’s closing stock price on Tuesday of 8,361 pence.
The Hong Kong exchange’s bid is considered a bet that a major international acquisition would help it overcome uncertainty at home.
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The London Stock Exchange rejects Hong Kong's $37 billion takeover bid https://t.co/F0zIXuUHbJ https://t.co/5Jj6jec2qa
OOPS London Stock Exchange has formally rejected a takeover proposal from Asian rival Hong Kong Exchanges, saying t… https://t.co/lGTGtbh45J
Hong Kong exchange falls over 3% after $39 billion takeover bid for LSE https://t.co/YiuejkYv8l https://t.co/oBunDHZ5AM
RT @ReutersIndia: Hong Kong Exchanges and Clearing has made an unsolicited $39 billion takeover bid for the London Stock Exchange, an offer…
RT @cnnbrk: The London Stock Exchange rejects Hong Kong's $37 billion takeover bid https://t.co/F0zIXuUHbJ https://t.co/5Jj6jec2qa