London Stock Exchange rejects Hong Kong takeover bid

London Stock Exchange rejects Hong Kong takeover bid

FILE PHOTO: Signage is seen outside the entrance of the London Stock Exchange in London, Britain. Aug 23, 2018. REUTERS/Peter Nicholls/File Photo

LONDON (Reuters) – London Stock Exchange (LSE.L) has rejected Hong Kong Exchange’s (0388.HK) $39 billion takeover offer, opting to stick with its planned purchase of data and analytics group Refinitiv.

The LSE said in a statement that it has fundamental concerns about key aspects of the proposal.

“Accordingly, the board unanimously rejects the conditional proposal and, given its fundamental flaws, sees no merit in further engagement,” the LSE said in a statement.

LSE shares were trading up 1.3% at 7,352 pence after the statement, little changed from earlier levels.

HKEX made its offer on Wednesday and it has been coolly received by shareholders so far, though analysts expect the Asian exchange to return with an improved proposal.

Reporting by Huw Jones; Editing by Rachel Armstrong

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