LSE takeover offer shoots London markets higher

A bid for the London Stock Exchange Group buoyed the London markets (Nick Ansell/PA)

LSE takeover offer shoots London markets higher

Independent.ie

The London markets surged higher on the back of news that Hong Kong Exchanges and Clearing tabled a £31.6 billion bid for the London Stock Exchange Group.

https://www.independent.ie/world-news/lse-takeover-offer-shoots-london-markets-higher-38489500.html

https://www.independent.ie/world-news/article38489499.ece/a6245/AUTOCROP/h342/ipanews_0bb862ab-f0f7-4253-bd2c-52a9292ad929_1

The London markets surged higher on the back of news that Hong Kong Exchanges and Clearing tabled a £31.6 billion bid for the London Stock Exchange Group.

The FTSE 100 closed 70.08 points higher at 7,338.03 at the end of trading on Wednesday.

The FTSE surpassed its, also positive, European peers after it was boosted by the takeover offer which will disrupt the UK firm’s tie-up with Refinitiv.

Connor Campbell, financial analyst at Spreadex, said: “Reports of a takeover bid for the London Stock Exchange by its Hong Kong counterpart helped the FTSE best its peers on Wednesday.

“At its peak jumping 15%, before settling for a slightly less impressive 6% increase, the LSE provided the main thrust of the UK index’s afternoon gains.”

In the deal, Hong Kong Exchanges and Clearing (HKEX) proposed to pay around £83.61 a share – which values the LSE at about £29.6 billion, or £31.6 billion including debt.

But HKEX said the potential offer is dependent on LSE’s planned 27 billion US dollars (£21.9 billion) deal to buy data provider Refinitiv being scrapped.

Neil Wilson, chief market analyst at Markets.com, said: “Investors are taking a long, cold look at this one and don’t think it has much chance of success. In fact, I’d say it’s a non-starter.”

Nevertheless, shares in LSE closed substantially higher, ending the day up 402p at 7,206p.

Although the London markets outshone their

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