Hargreaves Lansdown suitors given extra time to finalise £5.4bn takeover bid

The private equity consortium behind a potential £5.4bn takeover of London-listed trading platform Hargreaves Lansdown has been given more time to close the deal.

City rules meant the suitors had until 5pm on Thursday to formalise the £11.40-a-share offer, which Hargreaves’ board said it was prepared to accept.

But the trading platform said the parties have now agreed to extend the “act or shut up” deadline until 5pm on August 5.

In a statement, Hargreaves said the “material elements of due diligence” required for the deal have been completed.

It said: ‘Discussions between Hargreaves Lansdown and the Consortium, as well as the negotiation of the final transaction documentation, are continuing.’

Hargreaves Lansdown has revolutionised the savings market since it was founded by Peter Hargreaves and Stephen Lansdown 33 years ago.

By cutting out commission-hungry middlemen, they enabled millions of ordinary savers to choose and trade their own stocks and funds.

The group now has assets under management of a record £142.2bn, compared with £83.7bn and £66bn managed respectively by its main rivals AJ Bell and Interactive Investor.

It has also made the co-founders billionaires. They still own a quarter of the shares and are open to offers, so they hold the company’s fate in their hands.

Hargreaves has been an outspoken critic of previous management, telling the Financial Times that it had presided over “a disaster” that had halved the share price.

He blamed rising costs and the shift to financial advice, a heavily regulated area that big banks and nimble digital players have also entered.

The firm is still recovering from its association with disgraced stockpicker Neil Woodford, whose funds it promoted even as they were sinking.

It has also been criticised for its fees, which charge 0.45 per cent a year for investing on its platform, compared with 0.25 per cent for rival AJ Bell.

Dan Olley, who took over last year, has reined in costs and cut back on digital advice.

But analysts fear he may not have time to implement his strategy.