Hong Kong Exchanges and Clearing Ltd. (0388.HK) confirmed Monday it is studying a possible investment in the London Metal Exchange.
The bourse operator said the board will explore and evaluate appropriate available sources of funds if it needs additional financing for an investment.
The comment comes after media reports said Hong Kong Exchanges is possibly interested in buying the 135-year old commodities exchange.
Hong Kong Exchanges didn't further elaborate, but it said it will update the market when required in accordance with listing rules.
Firm bids for the LME are due May 7, with CME Group Inc. (CME), IntercontinentalExchange Inc. (ICE), Hong Kong Exchanges and Clearing Ltd. (0388.HK) and NYSE Liffe, the London-headquartered derivatives arm of NYSE Euronext (NYX), all in the final running, people familiar with the situation told Dow Jones Newswires earlier this month. The LME will then consider the offers and make its decision, with members, who are also the exchange's shareholders, to then vote on a bid if one is recommended.
-By Yvonne Lee, Dow Jones Newswires; 852-2802-7002; [email protected]