Governance

How HKEx’s LSE setback is a case study in bad M&A

The Hong Kong exchange’s formula of failure – emphasising on the financial merits while neglecting London’s concerns over corporate governance.

If there was a list of examples on how a takeover approach could go wrong without proper strategic planning and a well-planned public relations campaign, Hong Kong stock exchange’s failed bid for the London Stock Exchange Group would undoubtedly be on the list.

HKEx’s ambitious 32 billion $39 billion unsolicited bid for its London rival, which runs the London and Milan exchanges, was formally rejected less than 48 hours after the offer was proposed late Friday.

While the refusal itself wasn't a huge surprise, the LSE's blatant and somewhat discourteous response has become a major talking point within financial circles.

LSE...

¬ Haymarket Media Limited. All rights reserved.

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 1 article per month from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team subscription (2-5 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at [email protected], or +(852) 2122 5222

Share our publication on social media
Share our publication on social media