The London Stock Exchange has rebuffed Hong Kong’s takeover bid in a strongly worded letter and separate website post spelling out its concerns about the “fundamental flaws” of the plan, reported the South China Morning Post.
The UK bourse’s board of directors said it had unanimously rejected the $36.6 billion proposal from Hong Kong Exchanges and Clearing, which surprised the market when it was announced earlier this week.
In a letter to the chairman and chief executive of Hong Kong Exchanges and Clearing, LSE chairman Don Robert pulled no punches, making clear his preference for Shanghai over Hong Kong as a strategic partner.
“We do not believe HKEX provides us with the best long-term positioning in Asia or the best listing/ trading platform for China. We value our mutually beneficial partnership with the Shanghai Stock Exchange which is our preferred and direct channel to access the many opportunities with China,” it said, referring to LSE’s existing stock connect scheme with Shanghai Stock Exchange, which he said gives it direct access to China.