Hargreaves Lansdown shares surge after it rejects £4.7billion takeover approach

Hargreaves Lansdown has rejected a £4.7billion takeover approach

Shares in Hargreaves Lansdown soared after the company turned down a £4.7billion takeover bid from a group led by private equity powerhouse CVC Capital and Abu Dhabi's wealth fund.

The stock price of Hargreaves rose up to 18% in early trading on Thursday, following the announcement made after Wednesday's market close that it had rejected an offer priced at 985p per share for being too low. This approach is part of a broader trend of aggressive takeover attempts targeting UK-listed companies, as entities on the London Stock Exchange find themselves increasingly under pressure.

Meanwhile, shopping centre operator Capital & Regional might be gearing up for a takeover battle of its own after confirming on Thursday that it received a preliminary takeover proposal from its listed competitor and South African specialist Vukile, with NewRiver also making moves towards a potential bid involving its majority shareholder.

Concerns are mounting about a deepening crisis in the London market, as a wave of UK-listed companies are either being snapped up or moving their operations overseas. Hargreaves Lansdown said: "The board confirms that it unanimously rejected the proposal on the basis it substantially undervalues Hargreaves Lansdown and its future prospects."

The consortium eyeing Hargreaves, which includes private equity firms Nordic Capital and Platinum Ivy, a subsidiary wholly owned by the Abu Dhabi Investment Authority, acknowledged that it is "considering a possible offer". They had previously approached Hargreaves twice, with the latest attempt occurring at the end of April.

Hargreaves said: "The board is focused on executing its strategy and looks forward to updating the market at the full year results on August 9. In the meantime, shareholders are advised to take no action."

The CVC and Abu Dhabi consortium faces a deadline to make an offer or withdraw by 5pm on June 19, under City Takeover Panel rules. Bristol-based Hargreaves manages £150 billion in customer assets and serves 1.8 million customers.

Although recently demoted from the FTSE 100 Index due to falling shares, the company's stock has surged 42% over the past month, regaining its losses, with a 5% increase on Wednesday amid growing bid rumours.