Thursday, Aug 09, 2007

(This updates an article published at 0841 GMT, recasting with further background and updated share price.) 


 
   By Andrew Critchlow and Ian Edmondson 
   Of DOW JONES NEWSWIRES

STOCKHOLM (Dow Jones)--Shares in OMX AB (OMX.SK) climbed nearly 7% Thursday as newly-merged Borse Dubai said it is looking to buy shares in the Nordic exchange operator, the subject of a $3.7 billion bid by Nasdaq Stock Market Inc. (NDAQ).

Borse Dubai said it was buying OMX ordinary shares at 230 Swedish kronor ($34) and "entering into options for OMX AB ordinary shares at an exercise price of SEK230" in a book-building process with selected investors.

Borse Dubai added that it isn't obligated to exercise those options unless it acquires an interest in at least 25% of OMX shares. Chairman Essa Kazim, who is also chairman of the Dubai Financial Market, confirmed the statement but declined to elaborate.

Speculation has been growing that a counterbid for OMX could emerge, with the Dubai exchange operator topping a list of potential suitors as it seeks to strengthen its operations.

OMX agreed in May to be acquired by Nasdaq in a SEK208-a-share deal. At 1120 GMT, OMX shares in Stockholm were up SEK14, or 6.5%, at SEK231.

OMX operates stock and derivatives exchanges in Sweden, Denmark, Iceland, Finland and in the Baltic countries of Estonia, Latvia and Lithuania.

It has some of the world's biggest brand names listed on its exchanges, including telecommunications giants Nokia Corp. (NOK) and Telefon AB L.M. Ericsson (ERIC) as well as truck maker Volvo AB (VOLV).

The Swedish government, a 6.6% stakeholder in OMX, has said it plans to divest its stake as part of a state-owned asset sale and last month appointed a committee to investigate the consequences of the merger with Nasdaq. It is due to present results by Sept. 28. The Swedish government declined to comment Thursday.

OMX exchanges rank a combined sixth in Europe as measured by the value of domestic companies listed and supplies trading systems for a number of exchanges, including Milan-based Borsa Italiana, U.S. derivatives company International Securities Exchange Holdings Inc. and Hong Kong's stock exchange.

OMX and Nasdaq declined to comment.

Company Web site: http://www.omxgroup.com

-By Andrew Critchlow and Ian Edmondson, Dow Jones Newswires; +9714 364 4960; andrew.critchlow@dowjones.com

(Nikhil Lohade contributed to this article.)

(END) Dow Jones Newswires

09-08-07 1146GMT