The London Stock Exchange Group has rejected the £32bn takeover approach from the Hong Kong stock exchange, saying that its board had “fundamental concerns” about the offer’s strategy, deliverability, structure and value.
Hong Kong Exchanges and Clearing surprised the market with its unsolicited offer on Tuesday for the LSE, which was already in the process of securing the $27bn acquisition of data and trading group Refinitiv.
In a statement on Friday the LSE said: “The board has fundamental concerns about the key aspects of the conditional proposal: strategy, deliverability, form of consideration and value. Accordingly, the board unanimously rejects the conditional proposal and, given its fundamental flaws, sees no merit in further engagement.”
LSE has sent a letter to HKEX setting out the reasons for its rejection. The LSE added that it remained committed to its proposed acquisition of Refinitiv, with regulatory approval processes under way and a circular expected to shareholders in November.
London Stock Exchange shares were recently 1.5 per cent higher.
More to follow . . .