HONG KONG Exchanges & Clearing Ltd. (HKEX) is in talks with banks for a loan to back its proposed takeover bid for London Stock Exchange Group (LSE), people familiar with the matter said.

The bourse has been discussing borrowing between 7 billion pounds and 8 billion pounds (US$9.8 billion), according to the people. It’s seeking to form a syndicate of several lenders, the people said.

Under U.K. takeover rules, HKEX must submit a formal offer by Oct. 9 unless LSE grants an extension. Executives from the Hong Kong exchange are in London last week, meeting with LSE shareholders to convince them of the merits of the deal, which is known internally at HKEX as “Project Lima,” according to the people.

As part of its proposal, HKEX is demanding LSE walk away from its own US$27 billion deal for data provider Refinitiv. A total of 18 banks signed a US$13.5 billion bridge loan this month for that acquisition.

LSE earlier this month rejected HKEX’s 29.6 billion-pound takeover proposal. HKEX is counterattacking with a charm offensive, bringing in UBS Group AG and HSBC Holdings Plc to convince shareholders of the merits of its own proposal.

In a note Thursday, a Sandler O’Neill & Partners analyst said his firm hosted an investor meeting with HKEX CEO Charles Li and co-president Romnesh Lamba this week. The executives emphasized the merits of combining an Asian exchange with a European counterpart, given little overlap in their respective capabilities. (SD-Agencies)