LSE investors call on Hong Kong Exchanges and Clearing to increase bid by 20 per cent, add cash
- Three investors said they expect more cash from HKEX
- Investors want 20 per cent increase in headline price valuation
Some London Stock Exchange investors have told Hong Kong Exchanges and Clearing (HKEX) that any bid must contain more cash and be up to 20 per cent higher to persuade them to engage, three shareholders and a banking source close to the deal said.
The three investors, who own a combined 3 per cent of LSE, said HKEX has been lobbying them to back a potential US$39 billion cash and share offer for the London exchange after it made a surprise approach last month.
LSE quickly rejected HKEX’s initial approach, saying it faced regulatory hurdles and did not make strategic sense.
The London exchange has already agreed a separate US$27 billion deal to buy data provider Refinitiv, in which professional information company and Reuters News parent Thomson Reuters holds a 45 per cent stake.
HKEX now has until October 9 to make a formal bid or walk away, and its executives have been meeting LSE’s top shareholders to garner their support.
Guy de Blonay, manager of the Jupiter Financial Opportunities Fund, who met HKEX co-president Romnesh Lamba, said HKEX would have to increase the per share price to between £90-100, up from the initial approach of around £83.61 for shareholders to take it seriously.