Business news live - Hong Kong stock exchange makes £30bn bid for LSE
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Hong Kong Exchanges and Clearing has made a £29.6bn bid for the London Stock Exchange.
The offer values shares of LSE at 8,361p - a 22 per cent premium on Tuesday's closing price.
Hoever, shares in LSE rose only 16 per cent, suggesting investors are not entirely convinced the deal will go through.
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Serco wins extension to controversial Australian detention facilities contract
Outsourcing giant Serco has won an extension to a controversial contract to run Australia's onshore detention facilities.
Campaigners have fiercely criticised the Christmas Island Detention Centre over harsh treatment of asylum seekers.
UK-based Serco's new contract will now run to December 2021, and could be extended by a further two years.
The contract win comes despite Serco being fined £19.2m plus £3.7m in costs after admitting defrauding the British public over an electronic tagging scandal.
It comes after Bovis and Galliford revealed on Tuesday that they had restarted talks over a £1.1bn house-building deal, which sent Galliford's shares soaring.
"Given the current significant decline in forward bookings for the remainder of the year, we will make some short-term tactical measures such as capacity realignments.
"Specifically, we are reducing our capacity growth such that it will be slightly down year-on-year for the 2019 winter season (from end October 2019 to end March 2020) versus our original growth plan of more than 6% for the period."
Together, we will connect East and West, be more diversified and we will be able to offer customers greater innovation, risk management and trading opportunities.A combined group will be strongly placed to benefit from the dynamic and evolving macroeconomic landscape, whilst enhancing the longterm resilience and relevance of London and Hong Kong as global financial centres.
“In our view, Johnson's chances of reaching a deal with the EU by mid-October are limited. Thus, our base case is that the government will be forced to seek another Brexit extension and an election will be held before the year is out.”“The government is leaning in the direction of a Northern Ireland-only backstop… Resistance [to this] from his own and opposition parties is likely to be high.“If a Northern Ireland-only backstop deal were to emerge, it is far from certain that Johnson would be able to get the UK Parliament to agree to it, in our view.“A number of his own MPs and opposition members [are] keen to bring the Brexit saga to an end…but this is still likely to be a majority of MPs.“As the prospect of a no-deal Brexit in October has faded, sterling has staged a modest recovery, and we expect this to continue for the time being.”
The Board of London Stock Exchange Group plc ("LSEG") notes the announcement from Hong Kong Exchanges and Clearing Limited ("HKEX") and confirms that HKEX has made an unsolicited, preliminary and highly conditional proposal to acquire the entire share capital of LSEG (the "Proposal").
The Board of LSEG will consider this Proposal and will make a further announcement in due course.
The Press Association's Simon Neville is inside.
"While these affairs aren’t usually terribly exciting, when they blow up, they blow up big. This one has has that potential.
The bill passed in a 29-11 vote in the state Senate and will apply to app-based companies, despite their efforts to negotiate an exemption.
“HKEX bought LME a few years ago so have a presence in the UK already, but clearly they are trying to diversify away from their Chinese exposure, which is why they are bidding now and not nine months ago.
Shareholders won’t be rushed to make a decision as we like the Refinitiv deal. If this is an opening gambit by HKEX and they go 10% higher, then it will be a case of what might happen in the short term to the LSE share price versus a five year view on where the share price can go on a successful Refinitv integration. The caveat to this is that any deal would be held up in anti-trust for a long time, although the Refinitiv deal is not going to close for around a year anyway.The share price reaction one hour after the approach says the market does not believe it will be successful. There will now be pressure on ICE ( Intercontinental exchange ) as it’s now or never if they want to get involved.”
The US president tweeted:
"Lower for longer interest rates as well as the collapse in the value of sterling also help with the financing of such deals.
“The shares are currently trading c. 15% below HKEX’s proposed bid and we believe this reflects the real risk that politics would disrupt this deal, with the UK ‘losing’ an industry leader, particularly at a time when Brexit may elevate such sensitivities.Large scale cross border M&A has a patchy track record. For example, we believe the unravelling of the LSE and Deutsche Boerse’s merger reflected the influence of politicians particularly following the EU referendum result in June 2016.”
Our deputy editor Rob Merrick has the details.
'Putting out there all of the possible permutations of what could happen actually just serves to concern people', Andrea Leadsom claims