|
Dubai: Borse Dubai, the holding company of Dubai Financial Market and the Dubai International Financial Centre that controls 28.4 per cent shares of OMX is likely to find the support of hedge funds and institutional investors, according to investment bankers and analysts.
Currently, Borse Dubai is the single largest shareholder in OMX. The Dubai firm has purchased 4.9 per cent ordinary shares of OMX at 230 Swedish crowns per share.
In addition, a wholly-owned subsidiary of Borse Dubai has entered into option agreements to purchase another 23.5 per cent of OMX ordinary shares.
On target
Although the board of OMX AB, the Swedish government and the Sweden's Financial Services Authority are yet to officially react to Borse Dubai's offer to acquire 100 per cent shares in OMX, analysts said that the current shareholding structure of the Nordic exchanges group will help the Dubai firm to reach its target of acquiring controlling stakes in OMX.
The Swedish government along with two dozen large investors control more than 50 per cent of OMX shares while hedge funds are understood to own more than a 20 per cent stake in the Scandinavian exchanges operator.
Dubai's all cash offer is 13 per cent higher than the US-based Nasdaq's cash-and-share offer of 202.3 crowns ($28.89) per share.
The Dubai offer also represents a 38.6 per cent premium to (165.9 crowns) per share, the volume weighted average price of OMX shares over the 20 trading days up to and including May 23, 2007, the last full trading day prior to the announcement of Nasdaq's offer for OMX.
Opportunistic
"Hedge funds and most institutional investors are opportunistic when it comes to their minority share holdings. While they are mostly driven by price considerations, Dubai's proven track record in successful management of its recent overseas acquisitions has created a certain comfort level among institutional investors," said a Dubai-based investment banker.
Many large institutional investors such as the Citigroup and Nordea Bank, which have 6.5 per cent and 5.5 per cent respectively have been silent on the Dubai offer.
Although OMX had agreed to a share and cash offer from Nasdaq in May, it said in a carefully worded statement late on Friday that the OMX board will consider the Borse Dubai offer as compared to the Nasdaq offer and will update shareholders in due course.
The Stockholm headquartered OMX is listed on stock exchanges in Copenhagen, Stockholm, Helsinki and Iceland.
BREAK-UP
Ranking of stakeholders |
| Name |
Share capital and voting rights (%) |
No of shares |
| Investors |
10.7 |
12,950,507 |
| Swedish Government |
6.6 |
7,993,466 |
| Nordea Bank |
5.5 |
6,623,115 |
| Franklin-Templeton Funds |
3.6 |
4,289,604 |
| Fidelity Funds |
2.9 |
3,454,500 |
| Didner & Gerge Mutual Fund |
2.1 |
2,557,000 |
| Stenhammar Olof & company |
1.6 |
1,887,590 |
| Swedbank Robur Funds |
1.6 |
1,867,100 |
| SEB Funds |
1.5 |
1,785,144 |
| Finnish Government |
1.2 |
1,508,500 |
| Second Swedish National Pension Fund |
1.1 |
1,382,209 |
| SHB/SPP Funds |
1 |
1,228,756 |
| Danske Bank AS |
0.8 |
964,008 |
| First Swedish National Pension Fund |
0.7 |
838,150 |
| Swedbank |
0.7 |
793,216 |
| State of New Jersey Pension Fund |
0.6 |
750,000 |
| DWS-Scudder Funds |
0.6 |
657,600 |
| SEB-Trygg Insurance |
0.5 |
648,470 |
| Skandia Life Insurance |
0.5 |
620,700 |
| Holmström Birgitta |
0.4 |
510,000 |
| Summary of others |
55.8 |
67,330,832 |
| Summary of shares |
|
120,640,467 |
| Source: SIS Ägarservice AB and VPC AB's public share register as of 2007-06-29. |
| Note: Hedge funds are understood to have acquired more than 20 per cent last month. |
|
