LSE rejects Hong Kong’s Multi-Billion Dollar Takeover Bid
The London Stock Exchange (LSE) had rejected Hong Kong’s $37 billion takeover bid, expressing the amount to be low, politically risky, and lacking strategic merit.
In a strongly worded statement, LSE’s board said that it “unanimously” rejected the week’s conditional proposal from Hong Kong Exchanges and Clearing (HKEX)
LSE added that it had “no merit in further engagement” due to the offer’s “fundamental flaws”. The London Exchange said it remained committed to its acquisition of financial data provider Refinitiv.
HKEX responded in a statement that said it “continues to believe that the proposed combination… represents a highly compelling strategic opportunity.”
Analysts had widely expected the HKEX bid to fail given the worries about Chinese influence over vital financial infrastructure and concerns over reduced competition.