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Chris Hughes

Blackstone Finds It Pays to Leave Something on the Table

Why isn't the private equity firm driving a harder bargain out of the London Stock Exchange?

An employee views a FTSE share index board in the atrium of the London Stock Exchange.

An employee views a FTSE share index board in the atrium of the London Stock Exchange.

Photographer: Luke MacGregor/Bloomberg

The market’s positive reaction to London Stock Exchange Group Plc’s planned $27 billion takeover of Refinitiv is a sign investors think the U.K. bourse is getting a great deal. If that’s right, couldn’t buyout firm Blackstone Group LP, which is selling the data provider, drive a harder bargain?

London Stock Exchange shares jumped as much as 16% on Monday morning, adding 3.1 billion pounds ($3.8 billion) to the group’s market value. One interpretation is that investors think the company is paying a low price for the former Financial & Risk division of Canadian information group Thomson Reuters Corp. (Bloomberg LP, the parent of Bloomberg News, competes with Refinitiv in providing financial news, data and information.)