Tuesday, Sep 25, 2007


 
   By Jason Singer and Alistair MacDonald 
   Of THE WALL STREET JOURNAL

LONDON (Dow Jones)--Two rival Gulf firms have been in discussions with major shareholders of Nordic stock exchange operator OMX AB (OMX.SK) in an attempt to secure a larger holding, according to people familiar with the matter.

In what appears to be a battle for control of the Stockholm-based OMX, the two firms - Borse Dubai and the Qatar Investment Authority - have been seeking a price at which the shareholders would be willing to sell their stakes. The shareholders haven't committed to sell at a certain price, but the current market price of OMX shares, which closed Monday at 269.50 kroner ($41.33), is considered the "floor", people close to the matter said. The discussions, which are set to continue, are centered around how far above this level an agreement can be reached, those people said.

(This story and related background material will be available on The Wall Street Journal Web site, WSJ.com.)

Borse Dubai, which operates two stock exchanges in the United Arab Emirates state of Dubai, earlier made a takeover bid for OMX at 230 kroner per share. But that acquisition, which still requires regulatory approval, is in question after the Qatari fund bought a 9.98% stake in OMX last week. Borse Dubai controls a total of about 29% of OMX through shares and derivative contracts that give it a right to purchase shares in the future. Both Gulf investors also purchased large stakes in the London Stock Exchange last week.

The investors that have been approached include Swedish holding company Investor AB, which is controlled by the powerful Wallenberg family and is a founding shareholder of OMX. Investor AB holds about 10% of the company. The stakes held by Investor and others are key, because combined with either Qatar's or Dubai's current shareholdings they could add up to a blocking position, which could frustrate a full takeover by the other.

The Qatar Investment Authority hasn't said whether or not it aims to bid for all of OMX, though it has advised OMX shareholders in a public disclosure to "take no action" regarding the Borse Dubai offer - typically a prelude to a full takeover bid. It said after it purchased its stake - just hours after Borse Dubai said it had reached a truce with Nasdaq Stock Market Inc. (NDAQ), which had also been bidding for OMX - that the move was "a key step in the QIA's ambitions to take supportive holdings in the European exchange infrastructure."

Borse Dubai is unsure what Qatar's motive and future plans are at the moment, two people familiar with the matter said. Still, it has more resources for this deal, so can increase its offer, one of those people said.

- By Jason Singer and Alistair MacDonald, The Wall Street Journal

(END) Dow Jones Newswires

25-09-07 0556GMT