London Daily

Focus on the big picture.
Wednesday, Oct 22, 2025

LSE investors call on Hong Kong Exchanges and Clearing to increase bid by 20 per cent, add cash

LSE investors call on Hong Kong Exchanges and Clearing to increase bid by 20 per cent, add cash

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.
HKEX makes US$36.6 billion surprise bid to take over London Stock Exchange

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.

De Blonay said it would also need to increase the cash component. The initial proposal was around 25 per cent cash, with the rest in HKEX stock.

A banking source close to the deal said that £90-100 was “what most investors asked for”. The Hong Kong exchange has been looking for financing to see if it can meet a higher bid price, the source close to the deal said.

A bid in this range could prompt the LSE board to ask for an extension to the October deadline, De Blonay said, and move HKEX towards creating a powerhouse spanning Asia, Europe and the United States, and better able to compete with US rivals.

“[HKEX chief executive] Charles Li knows this is a one-off opportunity, and I would expect him to carry on fighting,” de Blonay said, pointing to considerable political hurdles and a possible backlash among HKEX’s own shareholders that could still scupper a higher recommended bid.

Two other LSE shareholders said they too expected HKEX to lift the headline price of its offer. The investors, who declined to be named, were however sceptical that a deal would pass regulatory muster, saying a bigger price tag may still not be enough to land Li his prize.

HKEX declined to comment on its plans on Thursday. LSE also declined to comment.

Reuters was not able to ascertain the views of some of LSE’s largest shareholders, including those who also hold a stake in the Asian bourse.

Li has been vocal in highlighting the long-term benefits of his deal versus the “short-term” earnings boost of the LSE-Refinitiv tie-up.

Li, a former offshore oil worker, lawyer, journalist and investment banker, has overseen HKEX’s transformation into the world’s largest capital-raising venue in five of the past 10 years.

Last week Li said that his team had been working on a takeover approach for a long time, but uncertainty around Britain’s exit from the European Union had any delayed action until the LSE announced its plan to buy Refinitiv in August.

The LSE board has so far stood by its deal with Refinitiv, which the HKEX proposal requires its London rival to abandon.

HKEX’s proposed deal is widely expected to draw regulatory scrutiny in Britain, Italy and the US, which is locked in a trade war with China, if it proceeds.

Several “big bang” exchange mergers have failed in recent years, opposed by politicians and regulators, and the LSE bid has raised concerns that China would have undue influence because some HKEX board members are appointed by Hong Kong’s government.

Li has said he is open to review governance.

As it gears up to push ahead with an offer, HKEX’s Lamba has met investors and hedge funds in the US over the past two weeks, two sources said.

It has also added HSBC and UBS to its financing advisory line-up over the past two weeks, regulatory filings show.

The HKEX deal has been orchestrated with the help of US advisory firm Moelis, whose lead banker Caroline Silver is one of the most prominent exchange bankers.
Newsletter

Related Articles

0:00
0:00
Close
Apple Challenges EU Digital Markets Act Crackdown in Landmark Court Battle
Nicolas Sarkozy begins five-year prison term at La Santé in Paris
Japan stocks surge to record as Sanae Takaichi becomes Prime Minister
This Is How the 'Heist of the Century' Was Carried Out at the Louvre in Seven Minutes: France Humiliated as Crown with 2,000 Diamonds Vanishes
China Warns UK of ‘Consequences’ After Delay to London Embassy Approval
France’s Wealthy Shift Billions to Luxembourg and Switzerland Amid Tax and Political Turmoil
"Sniper Position": Observation Post Targeting 'Air Force One' Found Before Trump’s Arrival in Florida
Shouting Match at the White House: 'Trump Cursed, Threw Maps, and Told Zelensky – "Putin Will Destroy You"'
Windows’ Own ‘Siri’ Has Arrived: You Can Now Talk to Your Computer
Thailand and Singapore Investigate Cambodian-Based Prince Group as U.S. and U.K. Sanctions Unfold
‘No Kings’ Protests Inflate Numbers — But History Shows Nations Collapse Without Strong Executive Power
Chinese Tech Giants Halt Stablecoin Launches After Beijing’s Regulatory Intervention
Manhattan Jury Holds BNP Paribas Liable for Enabling Sudanese Government Abuses
Trump Orders Immediate Release of Former Congressman George Santos After Commuting Prison Sentence
S&P Downgrades France’s Credit Rating, Citing Soaring Debt and Political Instability
Ofcom Rules BBC’s Gaza Documentary ‘Materially Misleading’ Over Narrator’s Hamas Ties
Diane Keaton’s Cause of Death Revealed as Pneumonia, Family Confirms
Former Lostprophets Frontman Ian Watkins Stabbed to Death in British Prison
"The Tsunami Is Coming, and It’s Massive": The World’s Richest Man Unveils a New AI Vision
Outsider, Heroine, Trailblazer: Diane Keaton Was Always a Little Strange — and Forever One of a Kind
Dramatic Development in the Death of 'Mango' Founder: Billionaire's Son Suspected of Murder
Two Years of Darkness: The Harrowing Testimonies of Israeli Hostages Emerging From Gaza Captivity
EU Moves to Use Frozen Russian Assets to Buy U.S. Weapons for Ukraine
Europe Emerges as the Biggest Casualty in U.S.-China Rare Earth Rivalry
HSBC Confronts Strategic Crossroads as NAB Seeks Only Retail Arm in Australia Exit
U.S. Chamber Sues Trump Over $100,000 H-1B Visa Fee
Shenzhen Expo Spotlights China’s Quantum Step in Semiconductor Self-Reliance
China Accelerates to the Forefront in Global Nuclear Fusion Race
Yachts, Private Jets, and a Picasso Painting: Exposed as 'One of the Largest Frauds in History'
Australia’s Wedgetail Spies Aid NATO Response as Russian MiGs Breach Estonian Airspace
McGowan Urges Chalmers to Cut Spending Over Tax Hike to Close $20 Billion Budget Gap
Victoria Orders Review of Transgender Prison Placement Amid Safety Concerns for Female Inmates
U.S. Treasury Mobilises New $20 Billion Debt Facility to Stabilise Argentina
French Business Leaders Decry Budget as Macron’s Pro-Enterprise Promise Undermined
Trump Claims Modi Pledged India Would End Russian Oil Imports Amid U.S. Tariff Pressure
Surging AI Startup Valuations Fuel Bubble Concerns Among Top Investors
Australian Punter Archie Wilson Tears Up During Nebraska Press Conference, Sparking Conversation on Male Vulnerability
Australia Confirms U.S. Access to Upgraded Submarine Shipyard Under AUKUS Deal
“Firepower” Promised for Ukraine as NATO Ministers Meet — But U.S. Tomahawks Remain Undecided
Brands Confront New Dilemma as Extremists Adopt Fashion Labels
The Sydney Sweeney and Jeans Storm: “The Outcome Surpassed Our Wildest Dreams”
Erika Kirk Delivers Moving Tribute at White House as Trump Awards Charlie Presidential Medal of Freedom
British Food Influencer ‘Big John’ Detained in Australia After Visa Dispute
ScamBodia: The Chinese Fraud Empire Shielded by Cambodia’s Ruling Elite
French PM Suspends Macron’s Pension Reform Until After 2027 in Bid to Stabilize Government
Orange, Bouygues and Free Make €17 Billion Bid for Drahi’s Altice France Telecom Assets
Dutch Government Seizes Chipmaker After U.S. Presses for Removal of Chinese CEO
Bessent Accuses China of Dragging Down Global Economy Amid New Trade Curbs
U.S. Revokes Visas of Foreign Nationals Who ‘Celebrated’ Charlie Kirk’s Assassination
AI and Cybersecurity at Forefront as GITEX Global 2025 Kicks Off in Dubai
×