The London Stock Exchange board unanimously rejected a $37 billion takeover bid from the Hong Kong Stock Exchange on Friday.
Don Robert, theLSE’s board Chairman, cited “fundamental concerns” over the bid, including a low valuation of the exchange, consideration and strategy in a letter to HKEX.
Hong Kong’s offer, first proposed on Monday, valued the LSE at 29.6 billion pounds, or around $36.9 billion.
In his letter, Robert said the acquisition would not meet the “strategic objectives” of LSE, and said it “would represent a significant backward step."
Hong Kong responded to London’s rejection of the offer, saying that after through analysis, the exchange believes the “proposal is in the best interests of shareholders, customers and for global capital markets as a whole.”
The offer from Hong Kong comes amid the London Stock Exchange’s acquisition Refinitiv — a financial data provider — for $27 billion. Part of the acquisition proposal from Hong Kong was conditional that the ongoing deal with Refinitiv be canceled.
“Given the fundamental flaws in your proposal, we see no merit in further engagement,” Robert said in his letter.