London Stock Exchange gets £32bn Hong Kong bid

London Stock Exchange gets £32bn Hong Kong bid

London Stock Exchange gets £32bn Hong Kong bid

Hong Kong Exchanges and Clearing (HKEX) has launched a surprise £29.6 billion bid for the London Stock Exchange, concocting a deal that would scupper the LSE's proposed takeover of market data and analytics group Refinitiv.

Hong Kong Exchanges & Clearing said earlier that it has offered 2,045p per share in cash and 2.495 newly-issued HKEX shares for the LSE.

The LSE has a separate $27 billion deal to acquire Refinitiv, which is owned by Blackstone and Thomson Reuters.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move.

The proposed transaction, HKEX said, is going to provide a clear path to open up Mainland China's capital markets, tap Asia's growing wealth, and "reinforce Hong Kong's position as the key connection between Mainland China, Asia and the rest of the world". The Asian bourse operator had considered the "ambitious and far-reaching" deal for many months, HKEX Chief Executive Officer Charles Li said.

Responding to what it said was "an unsolicited, preliminary and highly conditional proposal", the LSE said it would consider the proposal but "remains committed to and continues to make good progress on its proposed acquisition of Refinitiv".

"Shareholders won't be rushed to make a decision as we like the Refinitiv deal, he added".

Meanwhile, analysts over at Bank of America Merrill Lynch were also sceptical, saying the offer price was below their price objective for the LSE and that given the "regulatory complexity" they preferred the Refinitiv merger.

'The scale of the deal is one which approximately results in the two exchanges being a merger of equals, ' Hunter continued.

The European Commission said the deal would have created a "de facto monopoly" for certain financial services.

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