The Hong Kong Exchanges and Clearing (HKEX) has said it will drop its £32 billion offer for the London Stock Exchange Group (LSE) after failing to win sufficient shareholder support, the Financial Times reports.
The Hong Kong bourse which submitted its plans to the LSE a month ago said it was “disappointed” it had not convinced either the LSE’s management or shareholders over its plans.
Trade Hong Kong Exchanges and Clearing Limited - 0388 CFD
Its cash-and-shares offer worth £83.61 per share was based on the LSE giving up its agreed deal to buy Refinitiv, the data and trading group, for $27 billion.
However the LSE rejected its rival and its shareholders were unmoved by a three-week charm offensive Hong Kong launched to persuade them.
Charles Li, chief executive of HKEX, said the board had concluded an offer was not in the best interests of its shareholders.
The LSE is expected to post a circular to shareholders for the Refinitiv deal in coming weeks.
LSE shares dropped 6% to £70.02 after the news.
Photo: Alois Oscar/Shutterstock