Hong Kong bourse drops $36.1 billion bid to buy London Stock Exchange

Hong Kong Exchanges and Clearing Ltd, the operator of the Hong Kong stock exchange, said on Tuesday that it will not proceed with its 29.6 billion pounds ($36.1 billion) bid for the London Stock Exchange (LSE), as it has been unable to convince the LSE management about its vision of creating "a world-leading market infrastructure group".

"The level of engagement from the LSE led us to conclude that the continued pursuit of a combination of the two businesses would not be in the best interests of our own shareholders," chief executive of the HKEX Charles Li Xiaojia wrote in a blog post on Tuesday.

According to United Kingdom takeover rules, the HKEX will have to walk away from the deal for at least six months if it does not make a formal offer before the stipulated deadline of Oct 9.