(Alliance News) - London Stock Exchange Group PLC is likely to reject Hong Kong Exchanges & Clearing Ltd's GBP29.6 billion takeover offer, the Financial Times reported on Thursday.
Citing two people "close to the board", LSEG is leaning towards rebuffing the proposal, the FT said.
The FT reported that one "top 10" LSEG shareholder said HKEX was "trying to diversify away from their Chinese exposure, which is why they are bidding now and not nine months ago".
https://www.ft.com/content/d53ae238-d46f-11e9-8367-807ebd53ab77
HKEX on Wednesday said it would pay 2,045 pence in cash and 2.495 new HKEX shares for each LSEG share, valuing LSEG at GBP29.6 billion. It gives an enterprise value, which includes debt, of GBP31.6 billion.
Shares in HKEX were down 3.3% in Hong Kong on Thursday.
In response to the offer, LSEG said on Wednesday the proposal was "unsolicited, preliminary, and highly conditional", but it will look into it and make a further announcement "in due course". LSEG added that it remains committed to its Refinitiv Holdings Ltd acquisition.
