Hong Kong Exchanges and Clearing is seeking a syndicated loan of up to $9.8 billion in an effort to improve the attractiveness of its bid for the London Stock Exchange.
HKEX has engaged multiple banks in discussions to obtain a syndicated loan between £7-8 billion pounds ($8.6-9.8 billion), a 27 percent increase from its rejected bid in September for £29.6 billion ($36.4 billion).
Concurrently, HKEX executives are in London this week to sway LSE shareholders in its favor and push the deal, internally known as «Project Lima», anonymous sources told «Bloomberg». The HKEX must submit a formal offer by October, barring an extension granted by LSE.
Still No Tipping Point
According to the report, LSE shareholders in the U.K. have viewed the HKEX’s pitch with «ambivalence» with fund managers expressing favorable views for the Refinitiv deal – a $27 billion acquisition that includes a $13.5 billion bridge loan signed by 18 lenders – and saying that the HKEX bid was not high enough.
Agreements have yet to be finalized and the details regarding financing arrangements could still change, the report said, adding that HKEX declined to comment on the matter.
The HKEX and LSE had a relatively hostile exchange at a recent conference last week, with the latter supporting Shanghai as the future gateway to China.
