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Dubai: The book building process through which Borse Dubai acquired a 4.9 per cent stake in OMX with options for a further 22.5 per cent does not constitute a public takeover offer under the Swedish Takeover Act or Swedish Takeover Rules, Linklaters, the legal advisor of the Dubai firm, informed The Swedish Financial Supervisory Authority (FSA).
In response to queries from the Swedish FSA, Borse Dubai, the holding company of Dubai Financial Market and Dubai International Financial Exchange, said the purpose of buying shares in OMX was to acquire a large stake to pursue discussions with the OMX board and with the company's large shareholders regarding future cooperation.
Borse Dubai said only a limited number of institutional shareholders were contacted in the book building and no statement regarding a public offer has been communicated. "We have provided answers to all their questions and as of now they haven't asked for any further clarifications," James Wyatt-Tilbey, a London-based spokesperson for Borse Dubai, told Gulf News yesterday. Asked about OMX's reactions on Borse Dubai's answers, Heidi Wendt, a spokesperson for OMX, said the exchange has no comments to offer.
Role of hedge funds
In its communication with the Swedish FSA, Borse Dubai said it acquired OMX shares from 21 hedge funds. Analysts said yesterday that although Borse Dubai has not announced a takeover bid, it is still possible for the Dubai firm to raise its stake through acquisitions from hedge funds who hold a substantial stake in the exchange.
Financial Times reported yesterday that hedge funds have about 25 per cent stake in OMX. With a higher price at stake, it is anticipated that hedge fund manages would prefer any offer higher than 208 Swedish crowns per share offered by Nasdaq.
Institutional investors such as Investor AB (a Wallenberg company) and Nordea AB together hold about 17 per cent stake in OMX. While these two are currently tied to the Nasdaq offer, analysts said if more hedge funds decide to sell to Borse Dubai, other institutional investors are likely to follow suit.
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