LSE investors call on HKEX to up bid by 20% with cash


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LSE investors call on HKEX to up bid by 20% with cash

On Thursday, the 3rd of October 2019, some of the investors of London Stock Exchange had called on Hong Kong Exchanges to heighten their bid for LSE by at least 20% percent in order to persuade them to engage in another round of negotiation after an initial $36.6 billion bid of HKEX for LSE was ruled out a week earlier, at least three stakeholders of LSE alongside a banking source which would likely to oversee the financial terms of the deal if talks were advanced, revealed the subject-matter on condition of anonymity late on Thursday (October 3rd).

On top of that, three stakeholders of London Stock Exchange, who owned a combined 3 per cent stake of the 300-year-old LSE, had been quoted saying on Thursday (October 4th) that the Hong Kong Stock Exchange, the fourth single-largest stock exchange across the globe, had been lobbying since last week’s denial of a $36.6 billion cash and stock takeover bid, to back a $39 billion cash and stock offer.

Although, LSE had rejected HKEX’s initial bid last week adding that the deal would face off a number of regulatory hurdles and it was not making any strategic sense, but latest LSE call to increase the buyout amount by 20 percent appeared to have rekindled the hopes for Hong Kong Stock Exchange Ltd. Nonetheless, under current circumstances, HKEX has until October 9th to make a formal bid or walkway.