HKEx Drops Most in 21 Months, Says Open to Alliance
By Hanny Wan - Feb 10, 2011
Hong Kong Exchanges & Clearing Ltd.’s shares slumped the most in almost 21 months after Deutsche Boerse AG and NYSE Euronext announced talks over a deal that would create the world’s biggest exchange.
Shares in Hong Kong Exchanges, which said it is open to possible mergers, plunged 4.9 percent to HK$167.70 at the close of local trading, its sharpest drop since May 14, 2009.
Hong Kong’s stock exchange, currently the world’s largest by market value, has the most cash or near cash items on its balance sheet of any listed bourse, according to data compiled by Bloomberg. The company has not identified any immediate targets but remains open to opportunities if and when they arrive, said Lorraine Chan, a spokeswoman for the exchange.
“Due to changes in the financial-market landscape, Hong Kong Exchanges will consider international opportunities for alliances, partnerships and other relationships that present strategically compelling benefits consistent with its focus on markets in China,” Chan said in an e-mailed response to questions from Bloomberg. “HKEx will not pursue alliances, partnerships or other relationships purely for investment gains.”
Deutsche Boerse and NYSE Euronext’s announcement came a day after London Stock Exchange Group Plc said it will acquire Canada’s TMX Group Inc., owner of the Toronto bourse. Those deals follow Singapore Exchange Ltd.’s bid for Australia’s ASX Ltd., worth $8.4 billion when it was announced in October. Exchanges worldwide are competing for a greater share of globalized markets, creating larger exchanges and building faster trading platforms to attract investors.
Read more
bloomberg.com |
