Hong Kong Exchanges Stock Declines on LME Bid: Hong Kong Mover
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Hong Kong Exchanges & Clearing Ltd. was the only declining stock on the benchmark Hang Seng Index after Friday’s announcement that it bid 1.39 billion pounds ($2.18 billion) for the London Metal Exchange.
The shares fell 2.8 percent to HK$109.30 as of 10:24 a.m., while the Hang Seng Index climbed 1.6 percent. At 180 times LME’s 2011 net income, Hong Kong’s offer of 107.6 pounds a share is the most expensive exchange merger over $1 billion since at least 2000, according to data compiled by Bloomberg. The local bourse operator’s stock has retreated 25 percent since Feb. 18, when the South China Morning Post first reported the bid. The Bloomberg World Exchanges Index has dropped 14 percent.