London Stock Exchange (LSE) board has unanimously rejected the takeover bid from Hong Kong stock exchange. LSE has also said it remains committed to the purchase of Refinitiv Holdings.
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.
On September 11, Hong Kong Exchanges and Clearing has made a surprise USD 39 billion takeover bid for the LSE.
HKEX, which already has a base in London as the owner of the London Metal Exchange, said it had played a key role in underpinning the City of London's position as a pre-eminent global center for metals trading
The takeover bid for London Stock Exchange (LSE) by the Hong Kong company came as Britain is set to leave the European Union, a step some politicians fear could weaken its large financial sector.