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Dubai: Borse Dubai, the holding company of Dubai International Financial Exchange and Dubai Financial Market, is expected to face stiff resistance from key institutional investors and the Swedish government in its attempt to gain control of OMX, the Scandinavian stock market operator, according to analysts and media reports.
Borse Dubai officials met OMX management yesterday to present their case. Heidi Wendt, vice-president (press and international communications) of OMX, confirmed the meeting, but refused to comment on its outcome.
Later, Swedish government representatives met officials from Borse Dubai. "Borse Dubai asked for a meeting and we have listened to what they had to say. There is no bid, but if one is presented, the government will look through it and make an informed decision," government spokesperson Karin Forseke said in the statement.
Meanwhile, media reports in the UK yesterday suggested that money alone will not be a deciding factor in attracting investors to sell in favour of Borse Dubai. Currently, Swedish government holds 6.6 per cent in OMX while leading investors such as Sweden's Wallenberg family and the Citigroup hold 17.3 per cent and 6.26 per cent respectively.
According to a statement issued yesterday from Swedish Financial Supervisory Authority, Citigroup Global Markets has raised its shareholding in OMX AB to 7.6 million shares from 5.3 million shares.
OMX yesterday officially acknowledged that Borse Dubai has acquired 5,880,130 of its shares, equivalent to 4.9 per cent of the current 120,640,467 outstanding shares and votes. In addition, Borse Dubai also has an option agreement on 27,280,791 OMX shares.
Borse Dubai last week paid 230 crowns per share to buy the current stakes against OMX's 208-crown deal with Nasdaq.
Financial Times said yesterday that the Swedish government regards OMX part of a strategic industry and believes that it has a duty to ensure any owner is fit to operate a marketplace.
With Nasdaq hinting at its flexibility on the offer price and major institutional investors expressing scepticism about the Dubai's offer, the stage is all set for a bidding war between Nasdaq and Borse Dubai.
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