London Stock Exchange subject of £29.6bn bid

Shares in the London Stock Exchange (LSE) surged 10% higher after its Hong Kong rival revealed the cash-and-shares approach.

The Hong Kong exchange is proposing to pay around £8.36 a share - which values the LSE at around £29.6 billion, or £31.6 billion including debt.

Hong Kong Exchanges and Clearing (HKEX) said the tie-up would create a "global market infrastructure leader".

It added: "The proposed combination would strengthen both businesses, better position them to innovate across markets and geographies, and offer market participants and investors unprecedented global market connectivity."