Seeking Alpha

London Stock Exchange set to reject Hong Kong bid - report

|About: London Stock Exchange Grou... (LNSTY)|By:, SA News Editor

The London Stock Exchange (OTCPK:LNSTY) is set to reject a £32B takeover bid from Hong Kong Exchanges and Clearing (OTCPK:HKXCY), as investors are showing skepticism amid challenges both political and regulatory, the Telegraph says.

After an initial double-digit jump, LSE shares finished up just 5.9% in London, at £72.06 a ways short of the cash/stock offer of £83.61.

The UK government has referred to the stock exchange as "critically important," and the bid caught the LSE off guard.

A takeover by Hong Kong could derail the UK group's agreed $27B deal for Refinitiv (TRI, BX).

Subscribe for full text news in your inbox