Citibank cut HKEx to "sell" and it's target price from HK$285 to HK$210 citing "substantial regulatory hurdles for the proposed merger with LSE."
Quote from David Webb in the FT:
Through the Hong Kong government, Beijing controls the exchange here and lists vasts amounts of state-owned enterprises on it,
If I was an HKEx shareholder I'd be pretty unhappy at seeing the level of EPS dilution these numbers suggest would arise if the deal went through:
Broker's Pro Forma Analysis on HKEX Potential Merger with LSE (Table)AASTOCKS Financial News - Top News
HKEx can afford to up the offer - but I think they said they wouldn't do that before current offer had been responded to. Let's see if they do so now.