Hong Kong Exchanges and Clearing needs to up their current $39 billion bid for the London Stock Exchange by up to 20 percent in order to further talks in the deal.
Despite emphatic rejections and public feuding with the LSE, HKEX remains persistent in pursuing the deal and has recently begun engaging individual shareholders.
Three such shareholders have reportedly claimed that an additional 20 percent increase in the cash bid is the minimum requirement needed just to further engagement, according to a «Reuters» report. The three anonymous shareholders are belied to own a combined 3 percent of LSE.
Two other unnamed LSE shareholders also expected a higher cash bid but still remained skeptical that the deal would be approved by regulators.
Time is ticking for HKEX, which has until October 9 to make a formal bid or walk away from the pursuit altogether. HKEX was reportedly seeking a syndicated loan of up to $9.8 billion in order to improve the attractiveness of its bid despite repeated response about regulatory hurdles and lacking strategic value.
