Hong Kong’s $36.6 billion bid for the London Stock Exchange is a very rational move and things may get even more interesting, said former New York Stock Exchange CEO Dick Grasso.
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”It will be interesting to see what London’s reaction is you know this is probably one of those rare moments where we may see a reverse Pac Man again,” Grasso told FOX Business’ Maria Bartiromo on Wednesday. “You know we haven’t seen one in a while but London might turn around and bid for Hong Kong just to make it interesting.”
| Ticker | Security | Last | Change | %Chg |
|---|---|---|---|---|
| ICE | INTERCONTINENTAL EXCHANGE INC. | 89.84 | -0.28 | -0.31% |
| NDAQ | NASDAQ OMX GROUP INC | 97.64 | -0.51 | -0.52% |
| CBOE | CBOE GLOBAL MARKETS | 114.41 | -0.82 | -0.71% |
| CME | CME GROUP INC | 202.98 | -2.45 | -1.19% |
Grasso also notes that there is “a lot of money in exchanges these days” which may explain the hefty $36.6 billion bid.
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“Hong Kong has always been a market with a capitalization right up there at the top, the top three or top four,” he said.
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“The question becomes, you know, can you make money given that premium and the premium is rich but there is a lot particularly in London on the back end that can be very profitable.”
Additionally, the deal opens up a cross-global opportunity. “I think the attractiveness of London would put Hong Kong in a position to be a 24 by X market,” he said.
