Hong Kong's exchange refused to give up on its bid to take over the London ...
“HKEX believes that shareholders in LSEG should have the opportunity to analyze in detail both transactions and will continue to engage with them,” it said in a statement.
“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. The LSE also said a Hong Kong takeover could well be rejected by regulators or governments in Britain, the United States and Italy. HKEX’s assertion that implementing the deal would be swift and certain “is simply not credible”, it added.
However a source close to the LSE said even if the cash component of HKEX’s cash-and shares offer was raised, it would increase the risk for a combined group by piling on more leverage. This has pushed exchanges to look for related businesses for growth, with the likes of LSE and New York Stock Exchange owner ICE driving into more profitable and less politically sensitive areas like data and analytics, where revenue is rising.
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