Hargreaves Lansdown to seek bid extension - report

Hargreaves Lansdown is reportedly set to extend talks with a consortium of private investors who have proposed buying the company in a deal worth about £5bn.

According to Sky News, the investment platform is in detailed talks with the consortium, led by CVC Capital Partners, about a revised offer that would incorporate a final dividend potentially worth more than 40p a share.

An announcement that the two sides are working towards a recommended bid is expected ahead of a Takeover Panel deadline on Wednesday.

An extension is expected to give the consortium, which also includes an Abu Dhabi state fund, a week or two longer to finalise a formal offer, Sky sources said. People close to the talks cautioned that the situation remained fluid ahead of a Hargreaves Lansdown board meeting which is expected to take place later on Tuesday.

The precise price of a revised offer was unclear on Tuesday, although market sources suggested that including the final dividend, it could be worth in the region of 1050p-a-share or more.

Hargreaves Lansdown said last month that it had rejected a 985p-a-share offer on the grounds that it "substantially undervalued" the company.

Hargreaves Lansdown and CVC both declined to comment to Sky.

At 1350 BST, the shares were down 2.1% at 1,050.50p.