Proposal “substantially short”

Hong Kong’s bourse had abandoned its bid for a takeover of the London Stock Exchange, following a rejection from LSE shareholders.

In its rejection LSE management stated the proposed bid was “substantially short” of an appropriate valuation.         

“The board of HKEX is disappointed that it has been unable to engage with the management of LSEG in realising this vision,” the HKEK said in a statement but noted that it still believed it was a “strategically compelling” offer.

The bid had been contingent on the LSE dropping its owned prized takeover of  US financial data provider Refinitiv.Shares in LSE dropped 6% following the news.

“We’re slightly surprised HKEX didn’t try again – the fact they didn’t suggests their charms… were completely lost on the big shareholders,” Neil Wilson, chief market analyst at Markets.com, adding that investors had “balked at the anti-trust, regulatory and deliverability issues that the tie up implied”.