Borse Dubai unveils OMX bid

  • 2007-08-15
  • By Mike Collier

STOCKHOLM 's The Middle Eastern exchange that wants to buy OMX 's which runs all three Baltic stock exchanges 's has revealed further details of its bid.

Borse Dubai is offering $4 billion (2.95 billion euro), trumping an earlier $3.7 billion (2.7 billion euro) bid by US-based Nasdaq. As a further sweetener, BD is offering a seat on the board of a delisted OMX to a Nordic investor if its bid is succesful. BD currently holds 4.9% of OMX stock and has signed options to acquire an additional 23.5%.

OMX controls the stock and derivatives exchanges in Denmark, Iceland, Finland, Sweden and the Baltic states.

However, regulatory authorities in Sweden have expressed concern over the manner of BD's hostile bid. According to reports in the Financial Times and International Herald Tribune, the Swedish Financial Services Authority has written to BD asking for clarification of the details of the bid amid speculation that BD should have revealed its hand earlier.

"Borse Dubai has not sought the approval of the board or management," OMX chairman Urban Backstrom told the Financial Times. "This is one of the most peculiar ways to build trust I have ever experienced."

"We are prepared to give it financially full backing, to grow it and turn it into a truly global exchange," said Borse Dubai's chairman, Essa Kazim.

For its part, Nasdaq may sell part of its stake in the London Stock Exchange to up its bid for OMX according to The Sunday Times newspaper.