The London Stock Exchange emphatically rejected the Hong Kong bourse's $39 ...
) emphatically rejected the Hong Kong bourse’s $39 billion takeover offer on Friday, opting to stick with its planned purchase of data and analytics group Refinitiv.
HKEX’s valuation of the LSE falls “substantially short” and the “ongoing situation in Hong Kong” adds to uncertainty for shareholders, the London bourse added, a reference to weeks of pro-democracy street protests in the former British colony. The London course also owns the Milan exchange and has a significant American presence through its FTSE Russell index subsidiary and LCH, its derivatives clearing house which dominates the U.S. dollar swap market.The flat rejection indicates Hong Kong CEO Charles Li is unlikely to win the LSE board round with an improved financial offer, meaning if he wants to take it further he may have to go hostile.
HKEX has touted the deal as providing London with a major gateway to the rapidly growing Chinese economy, but the LSE said that HKEX did not provide the best long-term positioning for this.
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