Friday, Aug 17, 2007

(This updates an item published at 0942 GMT with comment from Borse Dubai's legal adviser. 


 
   By Jenny Clevstrom 
   Of DOW JONES NEWSWIRES

STOCKHOLM (Dow Jones)--Borse Dubai Friday said it has launched a 230 Swedish kronor ($32.81) all cash offer for Nordic stock exchange operator OMX AB (OMX.SK), trumping an agreed bid by Nasdaq Stock Market Inc. (NDAQ).

The government-owned middle-east exchange owner said the offer represents a premium of 13.7% to Nasdaq's offer of SEK202.3 a share made in May.

"We believe that this is a compelling business combination," said Borse Dubai Chief Executive Per Larsson. The all-cash bid from Dubai Borse against a backdrop of volatile credit markets that are threatening to scupper financing for many takeover deals, giving an advantage to cash rich companies in places like the middle east.

OMX said it acknowledged the Borse Dubai offer and said its board will consider it relative to the Nasdaq deal. It said it will update shareholders in due course and pointed out that the offer is conditional, among other things, on regulatory approval.

Fredrik Lindqvist, a partner with Linklaters, Borse Dubai's legal adviser, told Dow Jones Newswires Borse Dubai has "full confidence" in the regulatory process.

Borse Dubai, which is keen to strengthen its operations and extend its global reach, bought a 4.9% stake in OMX Aug. 9, and said Friday it had entered into option agreements to purchase another 23.5% at the same price.

If it exercises the options, a move which is subject to regulatory approval, Borse Dubai would be the largest OMX shareholder with a 28.4% stake.

Keefe, Bruyette & Woods analyst Michael Long said he didn't expect Nasdaq to raise its offer yet, but would wait and see how things play out. But he said Nasdaq has the means to raise the offer if it needed to.

Long said the value of Borse Dubai's counterbid is in line with expectations following the company's share buys in the open market.

CEO Larsson said on a conference call that the combination of Borse Dubai and OMX would create synergies on both revenue and growth side, though he didn't disclose any numbers. Larsson said that major advantages would come from the two businesses being complementary.

"It's not obvious that a cash bid at this level is more attractive than Nasdaq's bid," Lindgren said. He declined to comment on when it will make a decision.

Borse Dubai's bid values OMX at $4.02 billion.

The Swedish government holds a 6.6% stake in OMX which it plans to sell as part of a state asset sale. Finance Ministry spokeswoman Mia Widell said a statement would be released soon.

"We have no comment right now," said Widell, press secretary to Financial Markets Minister Mats Odell. "But we will be sending out a press release very soon today."

Borse Dubai's bid values OMX at SEK27.7 billion ($4.02 billion).

At 0950 GMT, OMX shares were down SEK1, or 0.4%, at SEK228, in line with the broader Stockholm market.

Nasdaq wasn't immediately available to comment.

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

-By Jenny Clevstrom, Dow Jones Newswires; +46 8 545 130 97; jenny.clevstrom@dowjones.com

(END) Dow Jones Newswires

17-08-07 0955GMT