Wednesday, Sep 26, 2007

(This updates an article published at 1009 GMT with comments from OMX, the Swedish government, Investor AB, Nordea and the QIA.) 


 
   By Jenny Clevstrom 
   Of DOW JONES NEWSWIRES

STOCKHOLM (Dow Jones)--Borse Dubai said Wednesday it has raised its cash offer for Nordic stock exchange operator OMX AB (OMX.SK) to 265 Swedish kronor ($40.76) a share, from SEK230 a share, and changed its bid acceptance level to over 50% from more than 90%.

OMX shares traded up following the announcement.

Nasdaq Stock Market Inc. (NDAQ) and Borse Dubai said they have secured 47.6% of the shares in OMX through direct ownership, option agreements and irrevocable undertakings.

Borse Dubai said it has raised its offer price to an aggregate consideration of SEK32 billion, or $4.9 billion, from its original bid valued at around $4 billion.

The former rival OMX suitors said they have secured irrevocable undertakings from Investor AB (INVE-B.SK), Nordea Bank (NDA.SK), OMX founder Olof Stenhammar, Didner & Gerge Fonder AB, Nykredit Realkredit A/S and OMX Chief Executive Magnus Bocker to tender 22.4 million OMX shares, equivalent to 18.5% of OMX shares outstanding.

OMX shares, which were suspended Wednesday morning, resumed trading at 0930 GMT. At 1105 GMT, they were up SEK1.5, or 0.6%, at SEK272.5, outperforming a broadly higher Stockholm market.

The OMX shareholder agreement is conditional on no party making an unsolicited competing offer above SEK303 per OMX share that Borse Dubai doesn't match within 15 banking days.

Borse Dubai said it has increased its offer by SEK35 per OMX share and Nasdaq has agreed to increase the cash component of its agreement with Borse Dubai by SEK1.21 billion to SEK12.58 billion, corresponding to SEK10 per OMX share of the total increase of SEK35 per OMX share.

The other terms and conditions of the Borse Dubai offer remain the same as in Borse Dubai's original bid of Aug. 17, Borse Dubai said.

OMX said it noted the Nasdaq-Borse Dubai announcement and that its board would take it into consideration in its assessment of the original structure proposed Sept. 20 by Nasdaq and Borse Dubai.

"This move is an acknowledgment that we have taken the right decision when choosing a strategic route," OMX Chairman Urban Baeckstroem said in a statement. "Our ability to take the next step increases by strengthening the OMX Nordic exchange through increased exposure of Nordic listed shares."

Nasdaq's and Borse Dubai's new offer for the OMX shares comes after the Qatar Investment Authority last week bought a 9.98% stake in OMX. The QIA made its move just as the two former OMX contenders had agreed to a three-way truce over the Nordic and Baltic exchange operator.

Shares in OMX Tuesday had continued to trade at near seven-year highs on speculation of a bidding war between Nasdaq-Borse Dubai and the QIA.

Toby Moore, a spokesman for the QIA, declined Wednesday to comment on the news development.

Before agreeing last week to a complex ownership deal over OMX, Nasdaq and Borse Dubai were locked in a near two-month takeover battle for OMX. Their deal of last week sets that Borse Dubai would buy OMX, then transfer ownership to Nasdaq in return for a 19.9% stake in the new combined company and Nasdaq's 28% stake in London Stock Exchange Group PLC (LSE.LN).

The Swedish government in a statement said it will make a complete evaluation of the upgraded bid for OMX.

"It's an interesting proposal and I note with satisfaction that Borse Dubai and Nasdaq have put emphasis on the value of Stockholm as a financial marketplace," Financial Markets Minister Mats Odell said.

Investor Chief Executive Boerje Ekholm in a statement said, "This is a very attractive deal for Investor's shareholders, as we achieve a good valuation on our investment in OMX while at the same time lowering the completion risk."

Arne Liljedahl, executive vice president at Nordea, in a statement said that "the conditions offered are reflecting the value potential in this new combination."

Borse Dubai also holds a 4.9% stake in OMX and has entered into option agreements to purchase another 23.5%, a move that's subject to regulatory approval.

Company Web sites: http://www.nasdaq.com

http://www.omxgroup.com

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

(END) Dow Jones Newswires

26-09-07 1128GMT