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WorldHong Kong exchange makes surprise $36.6 billion bid for LSE

13:40  11 september  2019
13:40  11 september  2019 Source:   msn.com

Hong Kong Exchanges proposes $39 billion London Stock Exchange takeover

Hong Kong Exchanges proposes $39 billion London Stock Exchange takeover Hong Kong Exchanges proposes $39 billion London Stock Exchange takeover

Hong Kong Exchanges & Clearing Ltd. made an unexpected $ 36 . 6 billion bid for London Stock Exchange Group Plc, a bold move that LSE ’s shares pared earlier gains, reflecting skepticism that a deal can be done in the face of unrest in Hong Kong and potential concern over Chinese ownership.

Sep.11 -- Hong Kong Exchanges and Clearing Ltd. made a surprise bid for London Stock Exchange Group Plc worth $ 36 . 6 billion . Bloomberg's Ben Scent reports

(Bloomberg) --

Hong Kong Exchanges & Clearing Ltd. made an unexpected $36.6 billion bid for London Stock Exchange Group Plc, a bold move that could upend the U.K. bourse’s combination with Refinitiv.

The offer faces faces several hurdles, as LSE’s board “remains committed to” the acquisition of data provider Refinitiv as it considers what it called an unsolicited, preliminary and highly conditional proposal.

LSE’s shares pared earlier gains, reflecting skepticism that a deal can be done in the face of escalating tensions with China over Hong Kong and the view that the $27 billion takeover of Refinitiv would allow LSE to push into financial data, offering a more secure future than a combination of stock exchanges. For HKEX, the deal promises a base away from the increasingly fraught political climate at home.

HKEX Websites Were Attacked on Thursday, CEO Says

HKEX Websites Were Attacked on Thursday, CEO Says Hong Kong Exchanges & Clearing Ltd.’s websites suffered cyberattacks on Thursday, though they were unrelated to the afternoon’s derivatives market trading halt, according to its chief executive officer. Charles Li said that the company has seen distributed denial-of-service attacks against its websites many times this year. The derivatives problem was a software bug in a system provided by a vendor, he said, without giving more details.

Wednesday, September 11, 2019 Hong Kong exchange makes surprise $ 36 . 6 billion bid for LSE | Nice Hand Hong Kong Exchanges & Clearing Ltd. made an

London Stock Exchange Group Plc has rejected a takeover proposal from Asian rival Hong Kong Exchanges & Clearing Ltd., saying the bid has HKEX acquired London Metal Exchange in 2012 for 1.4 billion pounds. LSE Chief Executive Officer David Schwimmer also has experience of stock

Under the proposed offer, HKEX would offer 2,045 pence as well as 2.495 newly issued HKEX shares for each LSE share. That values each LSE share at 8,361 pence, the Hong Kong bourse said in its statement. The U.K. company’s stock rose 6.2% to 7,190 pence on Wednesday at 10:54 a.m. in London, after earlier surging as much as 16%.

The Asian bourse operator had considered the “ambitious and far-reaching” deal for one of Europe’s largest exchanges for many months, HKEX Chief Executive Officer Charles Li said in a statement Wednesday.

LSE’s board said it would consider the proposal and will make a further announcement in due course.

Data Dominance

The Refinitiv deal was a bet by LSE on a future dominated by data, as the three-century-old exchange looks for ways to extend its global reach. Acquiring Refinitiv, the former financial and risk unit of Thomson Reuters, would help the London bourse expand further into data analysis.

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Hong Kong protesters plan mall sit-ins after hill-top human chains Hong Kong pro-democracy activists plan sit-ins at shopping malls and student rallies on Saturday after a night in which protesters took to the hills to form lantern-carrying human chains, the latest demonstrations in months of unrest. © Reuters/ATHIT PERAWONGMETHA Anti-government protesters gather at Lion Rock, in Hong Kong They also plan to gather outside the British Consulate on Sunday to demand that China honors a Sino-British Joint Declaration that was signed in 1984, laying out the former British colony's future after its return to China in 1997.

Hong Kong Exchanges and Clearing Ltd. made a surprise bid for London Stock Exchange Group Plc worth $ 36 . 6 billion . Bloomberg's Fion Li and Sarah Syed report on "Bloomberg Surveillance." Hong Kong Exchange Proposes Combination With LSE in $ 36 . 6 Billion Bid .

Hong Kong Exchanges and Clearing Ltd. made a surprise bid for London Stock Exchange Group Plc worth $ 36 . 6 billion . First City Markets has proven to be a

An HKEX-LSE pact would put an end to the Refinitiv purchase, instead creating a global trading power that would have stock, derivatives and commodities exchanges, as well as clearinghouses across two continents.

Hong Kong exchange makes surprise $36.6 billion bid for LSE© Bloomberg Key Speakers at the Credit Suisse Asian Investment Conference

Charles Li

Bloomberg LP, the parent of Bloomberg Intelligence, competes with Refinitiv and Thomson Reuters to provide financial news, data and information.

Both exchange operators have been involved in bourse merger deals in recent years, with LSE failing in its attempt to combine with Deutsche Boerse AG and HKEX acquiring London Metal Exchange in 2012 for 1.4 billion pounds.

LSE’s efforts to merge with Deutsche Boerse were ultimately scuppered by political considerations. HKEX’s proposed move could fall at the same hurdle, said Ronald Wan, chief executive at Partners Capital International Ltd. in Hong Kong.

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Berlin Zoo looks to name newborn panda twins Hong and Kong in solidarity with protesters After a Berlin newspaper asked readers what to name two newborn pandas at the Berlin Zoo, the most suggested names were "Hong" and "Kong," to support pro-democracy protests that have broken out in the city for months. © Getty Berlin Zoo looks to name newborn panda twins Hong and Kong in solidarity with protesters The Tagesspiegel newspaper, which held the naming contest, said the other names readers suggested were also political choices. Some suggested "Pay Pay" and "Coco & Chanel," The New York Times reported, due to the cost of keeping the pandas.

The Hong Kong exchange said the proposed combination would strengthen both businesses, better positioning them to innovate across markets and HKEX’s offer comes just five weeks after the LSE announced its own deal, a surprise merger with data group Refinitiv which is part of Thomson Reuters.

Hong Kong ’s stock exchange pulled a $ 36 . 6 billion bid for its London rival, a deal that Less than a month after it unveiled the surprise proposal, Hong Kong Exchanges & Clearing Ltd. said it couldn’t pursue a takeover of London Stock Exchange Group PLC without any input from LSE ’s management.

“A takeover from Hong Kong, a special administrative region of China, could be seen as a takeover from China. It won’t be easy to clear all the regulatory hurdles -- the deal is super politically sensitive,” he said.

U.K. Business Secretary Andrea Leadsom, speaking on Bloomberg Television as news of the deal broke, said the British government would scrutinize any tie-up between the exchanges. Leadsom said the U.K. authorities would “look very carefully at anything that had security implications for the U.K.”

HKEX was created in 2000 after the merger of stock and derivatives exchanges in Hong Kong. The company went public later that year.

Li said earlier this year in the company’s latest strategic plan that HKEX aims to be “globally connected,” while being “China anchored.” In recent years he has tied his business more closely to the Chinese mainland, in particular with the start of stock and bond trading links to markets in Shanghai and Shenzhen.

As well as its iconic stock exchange, LSE runs businesses including the world’s biggest OTC derivatives clearinghouse, LCH Ltd.; index provider FTSE Russell; a European share trading venue called Turquoise; and Borsa Italia.

Hong Kong protesters aim to 'stress test' airport

Hong Kong protesters aim to 'stress test' airport Hong Kong's pro-democracy protesters are planning to disrupt transport links to the airport Saturday in the first mobilization of their movement since the city's leader made a surprise concession earlier this week. © Lillian SUWANRUMPHA Police have said they are on standby to mobilise and keep Hong Kong airport up and running Millions of pro-democracy supporters have taken to Hong Kong's streets for the past three months in the biggest challenge to China's rule since the city's handover from Britain in 1997.

Hong Kong Exchange made a surprise offer for London Stock Exchange valuing one of Europe’s largest exchanges at £29. 6 billion . Both firms have been involved in exchange merger deals in recent years, with LSE failing in its attempt to combine with Deutsche Boerse AG and HKEX acquiring

Former NYSE CEO Dick Grasso on the Hong Kong Stock Exchange making an offer for the London Stock Exchange . FOX Business Network (FBN) is a financial news

Hong Kong lawmaker and HKEX shareholder Christopher Cheung said he was concerned most about the offer price, and what LSE could offer to HKEX. Cheung, a veteran broker, said in an interview that he thinks it’s getting harder for HKEX to start more trading links with China, citing the US-China trade tension and the recent protests in the city against growing influence from Beijing.

“If Hong Kong cannot count on itself to maintain its status as an international finance center, it is only natural to seek horizontal, inorganic growth through acquisition,” he said by phone.

(Updates with shares in third paragraph.)

--With assistance from Harry Wilson, Sofia Horta e Costa and Moxy Ying.

To contact the reporters on this story: Kiuyan Wong in Hong Kong at kwong739@bloomberg.net;Viren Vaghela in London at vvaghela1@bloomberg.net

To contact the editors responsible for this story: Ambereen Choudhury at achoudhury@bloomberg.net, ;Candice Zachariahs at czachariahs2@bloomberg.net, Sree Vidya Bhaktavatsalam

For more articles like this, please visit us at bloomberg.com

©2019 Bloomberg L.P.

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