LONDON: The Hong Kong Stock Exchange has bid almost £32 billion for its London rival in a shock move on Wednesday to bring together two of the world's largest financial hubs in Asia and Europe.
The surprise news initially sent LSEG shares surging 10 per cent before it pared the gain to 5.9 per cent at £72.06, far below the offer price of more than £83 per share as analysts doubted the likelihood of a deal being struck given LSEG's commitment to Refinitiv."Hong Kong Exchanges and Clearing Limited today announces that it has made a proposal to the board of LSEG to combine the two companies," it said in a statement.The cash-and-shares offer is worth £31.
"Following early engagement with LSEG, we look forward to working in detail with the LSEG board to demonstrate that this transaction is in the best interests of all stakeholders, investors and both businesses." The HKSE deal is subject to approval by both sets of shareholders, as well as the termination of the Refinitiv deal, which Charles Li, HKEX exececutive director, underlined was a prerequisite."The proposed offer would be totemic in terms of East-West relations," said Richard Hunter, head of markets at online broker Interactive Investor.
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