LSE.L - London Stock Exchange Group plc

LSE - LSE Delayed price. Currency in GBp
7,450.00
+198.00 (+2.73%)
At close: 4:41PM BST
Stock chart is not supported by your current browser
Previous close7,252.00
Open7,260.00
Bid7,190.00 x 0
Ask7,570.00 x 0
Day's range7,198.00 - 7,566.00
52-week range3,842.00 - 7,922.00
Volume1,802,698
Avg. volume873,318
Market cap26.056B
Beta (3Y monthly)0.38
PE ratio (TTM)54.86
EPS (TTM)135.80
Earnings date1 Aug 2019 - 11 Aug 2019
Forward dividend & yield0.40 (0.55%)
Ex-dividend date2019-08-22
1y target est4,810.83
  • Bloomberg

    A Scathing London Stock Exchange Sends HKEX Packing

    (Bloomberg) -- The man who runs Hong Kong’s stock exchange compared his silent longing and sudden bid for its London counterpart to the tale of Romeo and Juliet. Unlike Shakespeare’s hero, Charles Li turned out to be an unwanted suitor.On Friday, London Stock Exchange Group Plc Chairman Don Robert released one of the more scathing rejections of a corporate takeover offer in recent British memory, issuing a laundry list of geopolitical and business reasons why the LSE finds Hong Kong Exchanges & Clearing Ltd.’s $36.8 billion bid wanting. Here are some of its many criticisms.There’s not enough cash in the bid, which is too low anyway.“Three-quarters of your proposed consideration is in HKEX shares, representing a fundamentally different and much less attractive investment proposition to our shareholders.“Even assuming your proposal were deliverable, its value falls substantially short of an appropriate valuation.”Hong Kong’s unrest makes that stock even less attractive.“We see the value of your share consideration as inherently uncertain. The ongoing situation in Hong Kong adds to this uncertainty. Furthermore, we question the sustainability of HKEX’s position as a strategic gateway in the longer term.”Then there’s HKEX’s unusual relationship with its government.“We are not a Chinese company,” Li said Wednesday. He even claimed “we are not even a Hong Kong company,” referring to its international aspirations. LSE begs to differ.“There is no doubt that your unusual board structure and your relationship with the Hong Kong government will complicate matters,” the LSE said.The Chinese territory’s government holds 6% of HKEX’s stock and appoints 6 of the 13 board members. The city’s chief executive -- a person appointed by Beijing -- picks HKEX’s chairman.That relationship will concern U.S. and other authorities.“Your proposal would be subject to full scrutiny from a number of financial regulators, as well as governmental entities under, for example, the U.K. Enterprise Act, the CFIUS [national security] process in the U.S., and the ‘golden powers’ regime in Italy,” the LSE said. “Your assertion that implementation of a transaction would be ‘swift and certain’ is simply not credible. We judge that the approval processes would be exhaustive and that support from relevant parties, vital for the transaction, is highly uncertain.”LSE already has a bridgehead in China: Shanghai.This “is our preferred and direct channel to access the many opportunities with China,” the LSE said.They worked long and hard to get it: the Shanghai exchange interlisting project dates to 2015, when former finance minister George Osborne traveled to China to court officials. After a long wait while LSE sought Chinese approvals, Huatai Securities Co. became the first Stock Connect listing in London in June.LSE doesn’t see the point of scrapping its Refinitiv deal.LSE wants the former Thomson Reuters financial and risk business to transform itself into a global force in data and trading platforms. Stock investors like the $27 billion proposal, which sent LSE shares surging even before HKEX came knocking.The Refinitiv move took “many months of strategy development, deep consideration and discussion,” the LSE said.HKEX hasn’t said much publicly about why it thinks Refinitiv is a bad move, but two people familiar with HKEX’s thinking have said choosing the Asian bourse’s deal instead would add to LSE’s profit more quickly. They also said a successfully completed Refinitiv deal would make LSE too big to buy.LSE also slammed HKEX’s own business as old-school.“The high geographic concentration and heavy exposure to market transaction volumes in your business would represent a significant backward step for LSEG strategically.”Robert ended the letter with a final dig. “Given the fundamental flaws in your proposal, we see no merit in further engagement.”\--With assistance from Aaron Kirchfeld and Viren Vaghela.To contact the reporter on this story: Keith Campbell in London at k.campbell@bloomberg.netTo contact the editors responsible for this story: Ambereen Choudhury at achoudhury@bloomberg.net, Marion DakersFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Bloomberg

    Can London’s Great Wall Against Hong Kong Hold?

    (Bloomberg Opinion) -- Hong Kong Stock Exchanges & Clearing Ltd.’s tilt at London Stock Exchange Group Plc has achieved one thing: It has extracted a helpful checklist of requirements for any other would-be buyer of the venerable U.K. exchange. Hong Kong will struggle to address all of the concerns London set out on Friday – but it’s too early to say for certain it will fail.  It could always throw money at the problem.The LSE has firmly rejected Hong Kong’s proposal even as a basis for discussion. It notes regulatory approval for a deal is highly uncertain and there would probably be scant clarity in the next few months. To pursue a deal that might never materialize, LSE would have to ditch its planned takeover of data provider Refinitiv (which competes with Bloomberg LP, the parent of Bloomberg News). As things stand, the bird in the bush is worth less than the bird in the hand.LSE also questions the fundamental strategic selling point of the Hong Kong tie-up – that it provides a conduit for Chinese deposits to enter the global capital markets. It would rather tap that opportunity directly, citing its own recent tie-up with the Shanghai Stock Exchange. Merging with HKEX would be to double down in conventional share trading and there are other ways to access China.How the combined business would be controlled – in particular the government of Hong Kong’s right to appoint the chairman and approve five directors – is unacceptable in London.Some, but not all, of these non-financial issues can be addressed. Regulatory uncertainty is somewhat circular: it would diminish if the LSE was onside and working in partnership for clearance. In theory, Hong Kong could reform its board to make its oversight independent of government. But in practice?As for the strategy, HKEX is what it is. The future status of Hong Kong as a financial center is hard to predict amid the recent unrest.To the extent Hong Kong is unable to resolve all these concerns directly, it still has the option of offering a stupidly high price in mitigation. That would put incredible pressure to on the LSE to enter talks.So far, HKEX hasn’t done that. Its part-cash, part-stock offer is worth about 82 pounds ($102) a LSE share based on the most recent closing price. That is less than what the LSE thinks it will be worth after buying Refinitiv. The U.K. bourse won't put a number on itself, but analysts at Berenberg reckon that the combination would be worth 83 pounds a share.Hong Kong could certainly afford to add more cash to its proposal. But it needs to keep combined leverage modest, and certainly lower than what the LSE would have after buying Refinitiv. Given the systemic importance of the exchange, it will be easier to get regulatory approval if it is clear the combined company’s balance sheet is strong.Many LSE holders will discount the value of Hong Kong-listed shares, which they may not be able to own. Perhaps Hong Kong can get round this by simply chucking in even more stock or by raising cash locally through a share sale.Price can overcome a lot – but not everything. The politics of this situation are highly charged, and they will probably settle the matter.To contact the author of this story: Chris Hughes at chughes89@bloomberg.netTo contact the editor responsible for this story: Edward Evans at eevans3@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Chris Hughes is a Bloomberg Opinion columnist covering deals. He previously worked for Reuters Breakingviews, as well as the Financial Times and the Independent newspaper.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.

  • LSE Rejects Hong Kong Exchange’s Surprise $36.6 Billion Bid
    Bloomberg

    LSE Rejects Hong Kong Exchange’s Surprise $36.6 Billion Bid

    (Bloomberg) -- London Stock Exchange Group Plc has rejected a takeover proposal from Asian rival Hong Kong Exchanges & Clearing Ltd., saying the bid has “fundamental flaws.”The board of the British bourse, which is working on its own deal to buy data provider Refinitiv, said HKEX’s approach on Wednesday had problems in its “strategy, deliverability, form of consideration and value.”“Your assertion that implementation of a transaction would be ‘swift and certain’ is simply not credible,” the firm said in a statement Friday. “Given the fundamental flaws in your proposal, we see no merit in further engagement.”HKEX intends to continue its pursuit of the deal, according to Financial News. The firm previously said that its takeover would only happen if the LSE dropped its combination with Refinitiv -- and that it could go hostile if the business resisted its plans to build an Anglo-Asian markets giant.LSE published a letter to HKEX raising concerns including:Potential regulatory issues in both the U.K., United States and ItalyThe firm’s existing partnership with the Shanghai Stock Exchange, “which is our preferred and direct channel to access the many opportunities with China”Joining the business with that of HKEX, with its heavy exposure to market transaction volumes, “would represent a significant backward step”The “inherently uncertain” value of the stock portion of the takeover, particularly given the political climate in Hong Kong.Shares in the LSE were up 2.8% to 7,454 pence in afternoon trading in London, compared with HKEX’s 8,361 pence per share offer. The shares initially rose as much as 16% on Wednesday after HKEX said it wanted to combine the exchanges in a cash-and-stock deal that valued the London firm at 29.6 billion pounds ($36.9 billion). However, the stock pared gains after analysts poured cold water on the deal and top investors raised doubts about its attractiveness compared to the Refinitiv acquisition.“I don’t expect HKEX to walk away without trying more,” said Massimo Stabilini, a former Paulson & Co. executive who now runs his own hedge fund, Sinclair Capital. “I expect them to come back with a better offer and with a higher cash component.”The British government has the power to scrap the deal on public-interest grounds. On Wednesday it said LSE is a “critically important part of the U.K. financial system” and that it would be closely scrutinizing details of the transaction.Both firms have been involved in exchange merger deals in recent years, with LSE failing in its most recent attempt two years ago to combine with Deutsche Boerse AG. HKEX acquired London Metal Exchange in 2012 for 1.4 billion pounds.LSE Chief Executive Officer David Schwimmer also has experience of stock exchange deals: in his previous role at Goldman Sachs Group Inc., he was one of the main architects of the combination of the New York Stock Exchange and Archipelago Holdings Inc. over a decade ago.(Adds report of HKEX response in fourth paragraph, background in tenth.)\--With assistance from Nishant Kumar.To contact the reporter on this story: Viren Vaghela in London at vvaghela1@bloomberg.netTo contact the editors responsible for this story: Ambereen Choudhury at achoudhury@bloomberg.net, Marion Dakers, Keith CampbellFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Hong Kong exchange vows to press on with $39 billion LSE bid after rebuff
    Reuters

    Hong Kong exchange vows to press on with $39 billion LSE bid after rebuff

    Hong Kong's exchange refused to give up on its bid to take over the London Stock Exchange after the British bourse emphatically rejected its $39 billion takeover offer on Friday. The Hong Kong exchange said it would now hold more talks with LSE investors as it considers its next step, aiming to keep alive its hopes of becoming a more global player to rival U.S. giants ICE and CME. "HKEX believes that shareholders in LSEG should have the opportunity to analyse in detail both transactions and will continue to engage with them," it said in a statement.

  • London Stock Exchange rejects £32bn Hong Kong takeover bid
    Yahoo Finance UK

    London Stock Exchange rejects £32bn Hong Kong takeover bid

    The board said the takeover proposal has 'fundamental flaws' and unanimously rejected the bid.

  • Reuters - UK Focus

    LIVE MARKETS-ECB fireworks: Banks sizzle, but others not so much?

    * Credit Suisse upgrades UK equities to "overweight" in dollar terms Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Josephine Mason. After a choppy session yesterday, banks are enjoying a nice little rally here supported by the rotation theme and ECB's stimulus measures that largely met market expectations. Euro-zone banks have surged 16.5% since mid-August and are on track for their best weekly performance in 2-1/2 years after hitting their highest since July 25.

  • Reuters - UK Focus

    UPDATE 6-Hong Kong exchange vows to press on with $39 bln LSE bid after rebuff

    Hong Kong's exchange refused to give up on its bid to take over the London Stock Exchange after the British bourse emphatically rejected its $39 billion takeover offer on Friday. The Hong Kong exchange said it would now hold more talks with LSE investors as it considers its next step, aiming to keep alive its hopes of becoming a more global player to rival U.S. giants ICE and CME. "HKEX believes that shareholders in LSEG should have the opportunity to analyse in detail both transactions and will continue to engage with them," it said in a statement.

  • Reuters - UK Focus

    LIVE MARKETS-China's latest trade move: huuuuge concession or empty gesture?

    * Credit Suisse upgrades UK equities to "overweight" in dollar terms Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Josephine Mason. To quote U.S. President Trump, China has just made a huuuuuuuge concession to the United States by dropping additional tariffs on agricultural products, including soybeans and pork.

  • Reuters - UK Focus

    HKEx to spice up loan market

    HONG KONG/ LONDON, Sept 13 (LPC) - Asian and global banks are eyeing a role on a potential multi-billion dollar debt financing to support Hong Kong Exchanges and Clearing’s £31.6bn (US$39bn) takeover bid for the London Stock Exchange. HKEx slid 3.3% on Thursday as investors gave the takeover proposal a cool response. HKEx has tabled a conditional offer of about £83.61 per LSE share through a combination of cash and stock.

  • Reuters - UK Focus

    UPDATE 2-Banks sizzle as European stocks log fourth week of gains

    A surge in banks, miners and automakers galvanised European stocks on Friday, as continued rotation into the cyclical sectors amid signs of progress in U.S.-China trade talks drove the STOXX 600 to its fourth straight week of gains. In a week that saw trade tensions between Washington and Beijing thaw and the European Central Bank cut rates deeper into negative territory and relaunch bond purchases with no scheduled end-date, banking shares were the star performers. Euro zone banks, which wavered after the ECB decision on Thursday, rallied 2.4%, with analysts citing the central bank's easing of the terms of its long-term loans to banks and introduction of tiered deposit rate as offsetting the pain of negative rates.

  • Hong Kong Exchange’s China Ties May Backfire in LSE Quest
    Bloomberg

    Hong Kong Exchange’s China Ties May Backfire in LSE Quest

    (Bloomberg) -- When Hong Kong Exchanges & Clearing Ltd. bought the London Metal Exchange in 2012, the access it offered to the Chinese market was a big plus.But with questions mounting over Beijing’s role in Hong Kong affairs, those ties now represent a threat to HKEX’s 29.6 billion-pound ($36.6 billion) bid for the London Stock Exchange Group Plc.It’s an unfamiliar position for the corporate leaders who have made their drama-free links to Beijing key to their international appeal. Amid the U.S. trade war and scrutiny over China’s role in Hong Kong’s social unrest, the connections are emerging as a commercial handicap. Further complicating HKEX Chief Executive Officer Charles Li’s audacious offer is the $27 billion deal LSE made in July for data provider Refinitiv. Scrapping that is a condition of HKEX’s bid.“LSE is at the center of Britain’s financial market,” said Cecelia Zhong, CEO of Guojin Resources Ltd. and a former HKEX executive. “As it is busy focusing on its own data deal right now, the last thing LSE wants to consider is foreign ownership, particularly a Chinese player to control it.”The Hong Kong government, which owns 6% of HKEX, appoints six out of the company’s 13 board members, and the city’s chief executive -- a person appointed by Beijing -- picks the company’s chairman. The structure means the exchange operator comes under a level of political oversight unusual among other developed market bourses.Other Hong Kong companies have faced similar challenges even before the protests exploded earlier this year into the biggest crisis in Hong Kong since the city’s return to China in 1997.Deals VetoedIn November, Australia rejected a A$13 billion ($9 billion) gas project bid by Hong Kong tycoon Victor Li’s CK Infrastructure Holdings Ltd., calling it contrary to national interest. The decision followed a torrent of criticism in Australia that Hong Kong companies were just as susceptible to Beijing’s influence as those on the mainland. U.S. regulators last year rejected a bid by a Chinese-linked consortium to take over the Chicago Stock Exchange, a deal that then-candidate Donald Trump blasted when it was announced in 2016.The unrest also put unwelcome pressure on Hong Kong companies, particularly Cathay Pacific Airways Ltd., which faced a heavy backlash from China in the wake of its employees joining protests.About a month ago, China’s civil aviation authority began clamping down on Cathay, prompting the carrier to fire staff and threaten to terminate workers for even supporting the demonstrations -- let alone participating in them. Both the airline’s chief executive officer and chairman have since announced their resignations.“What we’ve seen with the Cathay Pacific example is that there is, whether direct or indirect, influence and pressure on Hong Kong companies, which I think some hoped was not necessarily there,” said Fraser Howie, who has two decades of experience in China’s financial markets and co-wrote the 2010 book “Red Capitalism.”China told its biggest state-run firms to take control of Hong Kong companies, Reuters reported Friday, a move that could further fuel concern that the mainland is stepping up efforts to play a bigger role in the former British colony. ‘British Institution’In a call with reporters on Wednesday, Li was asked about fears over China’s influence, and referred to the LME takeover. He recalled comments at the time that the deal would amount to a Chinese takeover -- concerns that haven’t borne out, he said.“We do not have Chinese management at all in the London Metal Exchange,” he said. “If you walk onto the floor, you will see a quintessential British institution.”HKEX shares fell 3.5% in Hong Kong on Thursday, and rose 1.3% Friday. LSE is trading at about 14% below the offer price, highlighting skepticism that a deal will get done. A statement from the London bourse called Wednesday’s offer an “unsolicited, preliminary and highly conditional proposal.” LSE was set to spurn the offer, people familiar with the matter said.LSE’s effort to complete its purchase of Refinitiv, the business that used to be Thomson Reuters Corp.’s financial and risk unit, is a big reason why HKEX’s bid is unlikely to succeed, said Jonas Short, head of the Beijing office at Everbright Sun Hung Kai Securities. Likewise, LSE shareholders including Jupiter Asset Management and Aberdeen Standard Investments indicated they prefer the British bourse’s planned takeover of Refinitiv -- a strategic move to expand in data that HKEX wants to scrap.Commercial strategy notwithstanding, the British government has the power to scrap the deal on public-interest grounds. “The London Stock Exchange is a critically important part of the U.K. financial system, so as you would expect, the government and the regulators will be looking at the details closely,” said a spokesperson for the U.K. government on Wednesday.Not all acquisitions involve strategic assets. Victor Li’s CK Asset Holdings Ltd.’s agreed to pay 2.7 billion pounds ($3.3 billion) for Greene King Plc, which operates more than 2,700 British bars, restaurants and hotels.Still, Brock Silvers, managing director at Kaiyuan Capital, said the heightened scrutiny on Chinese entities won’t recede even after an end to the trade war, and it’s almost certain, he said, that HKEX will be viewed as a Chinese company.“An eventual deal would expose LSE to a variety of Chinese corporates and government entities, and some of those relationships could be highly problematic from political, compliance, or know-your-customer perspectives,” he said.(Adds details of Reuters report in 11th paragraph)\--With assistance from Alfred Liu, Lucille Liu and Benjamin Robertson.To contact Bloomberg News staff for this story: Kiuyan Wong in Hong Kong at kwong739@bloomberg.net;Evelyn Yu in Shanghai at yyu263@bloomberg.netTo contact the editors responsible for this story: Candice Zachariahs at czachariahs2@bloomberg.net, James Hertling, Sam MamudiFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Reuters - UK Focus

    LIVE MARKETS-Have investors had their fill for the week?

    Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Josephine Mason. European stock futures are inching ever so slightly higher in early deals this morning as investors continue to dip into riskier assets amid hopes that the ECB's stimulus measures will shore up the struggling euro-zone economy and after positive noises over U.S.-China trade talks. Gains are meagre and DAX and FTSE futures look vulnerable though in a sign that investors may have had their fill after pretty decent gains, with major indices set for a fourth straight weekly gain.

  • Reuters - UK Focus

    LIVE MARKETS-ECB round-up: Lower for longer, or ever?

    * Euro zone stocks hit highest since July 25 after ECB rate cut, restarts QE * STOXXE benchmark now up 0.6% * Euro zone banks fall 0.3% as tiering euphoria fades * Morrison up on results, AB Inbev gains on unit IPO plan * European stocks also boosted briefly by positive report on U.S.-China trade Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Danilo Masoni. Reach him on Messenger to share your thoughts on market moves: rm://danilo.masoni.thomsonreuters.com@reuters.net ECB ROUND-UP: LOWER FOR LONGER, OR EVER?

  • Reuters - UK Focus

    LIVE MARKETS-Why Italian banks are outperforming: it's the spread baby!

    * Euro zone stocks hit highest since July 25 after ECB rate cut, restarts QE * STOXXE benchmark now up 0.4% * Euro zone banks fall 0.2% as tiering euphoria fades * Morrison up on results, AB Inbev gains on unit IPO plan * European stocks also boosted briefly by positive report on U.S.-China trade Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Danilo Masoni. Reach him on Messenger to share your thoughts on market moves: rm://danilo.masoni.thomsonreuters.com@reuters.net WHY ITALIAN BANKS ARE OUTPERFORMING: IT'S THE SPREAD BABY! (1514 GMT) Italian banks are once again moving out of synch compared to their European peers which are having a rollercoaster session as the market digests measures to help the sector to limit the damage from negative interest rates.

  • Hurdles Mount for Hong Kong Exchange’s $36.6 Billion LSE Bid
    Bloomberg

    Hurdles Mount for Hong Kong Exchange’s $36.6 Billion LSE Bid

    (Bloomberg) -- The plan by Hong Kong Exchanges & Clearing Ltd. to take over London Stock Exchange Group Plc is running into multiple obstacles a day after the surprise bid was launched, with the U.K. bourse leaning toward rejecting the offer in its current form.LSE and its advisers have wide-ranging concerns, including the possible influence of China on the HKEX, and the deal could face pushback from U.K. and U.S. officials over security concerns, according to people familiar with the matter. LSE is also wary of a bid that is structured mainly in stock and has exposure to the volatile situation in Hong Kong, the people said.The Asian bid also faces skepticism from LSE’s British-based shareholders. Jupiter Asset Management and Aberdeen Standard Investments indicated they prefer the British bourse’s planned combination with Refinitiv -- a strategic purchase to expand in data that HKEX wants to scrap. HKEX shares fell as much as 3.8%, while LSE is trading at about 14% below the offer price.“Skepticism abounds around the likelihood of the U.K. regulator approving this deal,” said Guy de Blonay, a fund manager at Jupiter, which holds about 0.7% of LSE’s equity. There’s “also an uncertain appetite to receive HKEX paper. At this stage, there is arguably greater long-term value in the Refinitiv deal than in the HKEX proposal.”Representatives for LSE and HKEX declined to comment.Shares WhipsawedLSE stock initially jumped as much as 16% after HKEX said it wanted to combine the exchanges in a cash-and-stock deal that valued the London firm at 29.6 billion pounds ($36.6 billion). However, the stock pared gains amid doubts over how shareholders and regulators will react.While the takeover represents a vote of confidence in London as a post-Brexit financial hub, the British government has the power to scrap the deal on public-interest grounds.“The London Stock Exchange is a critically important part of the U.K. financial system, so as you would expect, the government and the regulators will be looking at the details closely,” said a spokesperson for the U.K. government on Wednesday. “We cannot comment further on commercial matters.”But the deal isn’t dead yet. Another person familiar with the matter said that Hong Kong Exchange could consider further steps to sweeten the offer for LSE, and that they haven’t received any feedback yet from LSE’s board of directors or management. Two people said the HKEX deal would add to LSE’s profit faster than a combination with Refinitiv, and that regulatory concerns would be easy to overcome.Still, with global political tensions rising -- including protests in Hong Kong and U.S. President Donald Trump’s trade war with China -- commercial arguments may not be the most compelling, especially given the LSE’s prominence as the world’s biggest venue for handling interest-rate swaps. U.S. regulators last year rejected a bid by a Chinese-linked consortium to take over the Chicago Stock Exchange, a deal that then-candidate Trump blasted when it was announced in 2016.LSE senior managers were blindsided by the offer, said another person familiar with the situation, who asked not to be named discussing matters that aren’t public on Wednesday. Internally, recent meetings have concentrated on the significant benefits of the Refinitiv deal, the person said.Rhona Millar, an investment analyst at Aberdeen Standard Investments, which is a top 15 LSE shareholder, echoed de Blonay’s misgivings. “Shareholders who previously welcomed the proposed acquisition of Refinitiv will be seeking assurances that the strategic rationale will not be undermined by a successful bid for LSE,” she said.(Adds detail on Hong Kong Exchange strategy in ninth paragraph.)\--With assistance from Harry Wilson, Kiuyan Wong, Aaron Kirchfeld and Tim Ross.To contact the reporters on this story: Dinesh Nair in London at dnair5@bloomberg.net;Viren Vaghela in London at vvaghela1@bloomberg.net;Jan-Henrik Förster in London at jforster20@bloomberg.netTo contact the editors responsible for this story: Ambereen Choudhury at achoudhury@bloomberg.net, Keith CampbellFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Reuters - UK Focus

    LIVE MARKETS-ECB: thumbs down from banks

    * European shares rise, hit highest since July 29 * ECB unveils rate cut, restarts QE * Euro-zone benchmark up 0.6% * EZ banks fall 0.5% as tiering euphoria fades * Morrison up on results, AB Inbev gains on unit IPO plan * Wall Street set to open higher on tariff delays Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Danilo Masoni. Reach him on Messenger to share your thoughts on market moves: rm://danilo.masoni.thomsonreuters.com@reuters.net ECB: THUMBS DOWN FROM BANKS (1326 GMT) Markets are giving a positive response to the package of measures the ECB has unveiled today but banks have taken a turn to the downside, falling as much as 2.6% on the day. With measures to ease the pain of sub-zero interest rates already baked-in, investors have turned their attention to lower for longer interest rates.

  • Reuters - UK Focus

    LIVE MARKETS-Mixed reaction to ECB

    * STOXX 600 hits highest since July 29 * ECB unveils rate cut, restarts QE * Euro-zone benchmark up 0.5% * EZ banks nearly flat after jumping 1.7% * Trade war hopes lift Asian shares * Morrison up on results, AB Inbev gains on unit IPO plan Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Danilo Masoni. Reach him on Messenger to share your thoughts on market moves: rm://danilo.masoni.thomsonreuters.com@reuters.net MIXED REACTION TO ECB (1310 GMT) ECB's Draghi has delivered it ... sort of. A 10 bps rate cut, new round of bond purchases and tiered deposit rates were the highlights of today's ECB monetary policy statement.

  • TeamViewer IPO Gives Germany Its First Tech Champion in Decades
    Bloomberg

    TeamViewer IPO Gives Germany Its First Tech Champion in Decades

    (Bloomberg) -- Germany will finally get another major listed tech company when software maker TeamViewer AG completes a 2.3 billion-euro ($2.5 billion) initial public offering this month -- the biggest in the industry in almost two decades.While Germany has several established tech companies, including software giant SAP SE, there have been few sizable newcomers since chipmaker Infineon Technologies AG listed in 2000. TeamViewer will provide a boost to the weakest European IPO market in years and comes as Germany’s economy teeters on the brink of a recession. The share sale, which is oversubscribed, will be the country’s largest so far this year.Founded in 2005, TeamViewer has developed from a local provider of remote computer access tools to one that offers connectivity to customers in about 180 countries. The company plans to further expand in Europe, Asia and the U.S., and will add to its offerings for large corporate customers to help them connect anything from mobile phones and tablets to machine sensors, smart farming equipment or wind turbines.With a sudden influx of new offerings in Europe, IPO investors have a lot to choose from. Apart from TeamViewer, private equity firm EQT Partners AB is also marketing its initial public offering, with a management roadshow kicking off next week. On Thursday, Helios Towers Plc -- one of sub-Saharan Africa’s largest mobile-phone tower operators -- announced plans to list on the London Stock Exchange.TeamViewer’s owner, private equity firm Permira, plans to sell as many as 84 million shares for 23.50 euros to 27.50 euros each via holding firm TigerLuxOne, the company said late Wednesday. TeamViewer stock is expected to start trading on the Frankfurt Stock Exchange on Sept. 25.The price range would give the company a market value of between 4.7 billion euros and 5.5 billion euros. Bloomberg News previously reported the valuation could be 4 billion euros to 5 billion euros. The listing will improve TeamViewer’s brand recognition and make it easier for it to grow organically and via “selected acquisitions,” spokeswoman Martina Dier said.TeamViewer may hire more people in the U.S. and opened offices in China, Japan, India and Singapore last year to expand sales in those markets. In China alone, TeamViewer has “tens of millions” of free users, more of whom the company wants to convert into paying customers, according to Chief Executive Officer Oliver Steil.“Our big growth combined with strong profitability -- even if market conditions have been difficult -- makes our financial profile attractive to investors,” Steil said in an interview last month.TeamViewer’s cash billings grew more than 35% in the first half, faster than last year’s 25% growth, to over 140 million euros, the CEO said. The company posted a cash operating profit margin of more than 50% during the period. It says its software has been installed on more than 2 billion devices.Permira bought the company for 870 million euros in 2014. It has since partnered with firms including Alibaba Group Holding Ltd. and Salesforce.com Inc. to bolster its cloud offerings.The free float, a measure of company stock available to trade, will be 30% to 42%, depending on the size of the IPO, according to the statement.Goldman Sachs Group Inc. and Morgan Stanley are arranging the IPO, with Bank of America Corp., Barclays Plc and RBC Capital Markets. Lilja & Co. is acting as an independent adviser to Permira and TeamViewer.(Updates with company comment in sixth paragraph. An earlier version of the story was corrected to remove reference to IPO proceeeds)To contact the reporter on this story: Stefan Nicola in Berlin at snicola2@bloomberg.netTo contact the editors responsible for this story: Dale Crofts at dcrofts@bloomberg.net, Andrew Blackman, Chris ReiterFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Reuters - UK Focus

    LIVE MARKETS-Postcard from NY: 'very underweight' on European banks

    Reach him on Messenger to share your thoughts on market moves: rm://danilo.masoni.thomsonreuters.com@reuters.net POSTCARD FROM NY:'VERY UNDERWEIGHT' ON EUROPEAN BANKS (0837 GMT) While banks were staging one of their strongest rallies in many years this week, Barclays travelled to New York for its global financials conference. It may not be a surprise but the gathering provided more evidence of how investors are bearish on European banks. "Investors overwhelmingly say they expect European financials to underperform the market over the next 12m with 53% expecting that vs. 24% expecting outperformance, which is very consistent with positioning, with almost 69% being either very or modestly underweight the sector a similar proportion to the 66% we saw last year," say analysts at the UK bank.

  • Reuters - UK Focus

    LIVE MARKETS-Recipe for success: Don't go too big or too small

    * European shares open higher * STOXX 600 at highest since July 29 * ECB set to unveil fresh stimulus measures * Trade war hopes lift Asian shares * Morrison up on results, AB Inbev gains on unit IPO plan Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Danilo Masoni. Reach him on Messenger to share your thoughts on market moves: rm://danilo.masoni.thomsonreuters.com@reuters.net RECIPE FOR SUCCESS: DON'T GO TOO BIG OR TOO SMALL (0821 GMT) The FTSE 250 midcap index, which has a mix of both international and domestic flavour, has been a clear winner in London in the last 2-months amid the Brexit crisis. As the sterling was jumping around on Brexit headlines over the last few weeks, export-heavy FTSE 100 benefitted every time the pound fell sharply and lost those gains when pound recovered, while the domestically focused small caps lost out on worries about domestic economy in case of a no-deal Brexit.

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