Hargreaves Lansdown rejects $6 bln CVC Advisers, ADIA takeover proposal

Hargreaves Lansdown HL. has rejected a 4.67 billion pound ($5.94 billion) takeover proposal from a consortium led by CVC Advisers and the Abu Dhabi Investment Authority, after the board of the investment platform said it "substantially" undervalued its prospects.

In a statement, Hargreaves Lansdown said its board had unanimously rejected the offer, the latest in a series of approaches - the most recent of which reflected a price of 985 pence a share, the company said.

"This news may give the shares further positive momentum, and indeed buoy the peer group further, too," analysts at Jefferies said in a note on Wednesday, when the consortium's interest first broke.

"We remain positive on Hargreaves in the longer term, with demographic pressures easing, a cogent investment plan for the business in place, and some arguments against its prospects misplaced, in our view," the note said.

The consortium has until June 19 to announce a firm intention to make an offer or walk away.

($1 = 0.7860 pounds)