Target: Hargreaves Lansdown said it has received two proposals from a consortium of buyers
Britain’s biggest investment platform has become the latest London-listed company to be targeted by foreign bidders.
After the market closed last night, Hargreaves Lansdown said it had received two proposals from a consortium of buyers regarding a possible acquisition.
The latest offer – valued at 985 pence per share or £4.67bn – was unanimously rejected by the board “on the basis that it substantially undervalues Hargreaves Lansdown and its future prospects”.
But the bidders – private equity firm CVC, Nordic Capital and Platinum Ivy, owned by the Abu Dhabi Investment Authority (ADIA) – were considering a new offer.
Hargreaves Lansdown is just the latest London-listed company to be targeted by foreign buyers this year, with the value of foreign deals exceeding £70bn.
The raid became public just hours after mining giant Anglo American rejected a third bid from larger rival BHP worth £39bn.
But it agreed to enter talks with the Australian group in a sign a deal could be on the cards after a protracted bidding battle.
Others who have been contacted in recent weeks include Royal Mail owner International Distributions Services (IDS), packaging giant DS Smith and cybersecurity group Darktrace.
Offers have also been submitted this week for the video game company Keywords Studios and the energy company XP Power.
hargreaves Sharewhich rose 5 per cent, or 46.2 pence, to 979 pence, will be in the spotlight when trading resumes in London today.
Shares in the FTSE 250 company, which have fallen since the pandemic, are up a third this year to their highest level since August 2022.
Although it is considering another offer, the CVC-led consortium warned that “there can be no certainty that a firm offer will be made.”
Under takeover rules, it has until June 19 to announce whether it wants to make a firm offer or withdraw.
The attack on UK plc has fueled concerns that British companies are undervalued and face a growing flurry of merger and acquisition activity.
Another concern is the lack of companies joining the stock market through initial public offerings (IPOs). One analyst even warned that the London stock market was facing a “death by a thousand cuts” as listed companies bow to foreign takeovers.