Sweden plans no action against Dubai

"Borse Dubai's press release announced on August 9, 2007 was a public takeover bid. As a consequence, Borse Dubai has breached the Act on Takeovers in the Stock Market," Finansinspektionen (FI), the Swedish Financial Supervisory Authority, said in a statement. "Borse Dubai has subsequently complied with the Act. Therefore, no further action will be taken by FI." FI ruled that the press release that Borse Dubai made public on August 9 was a public takeover bid as defined in the Act on Takeovers in the Stock Market. When Borse Dubai made the press release public, it had not undertaken to follow the rules that Nordic Exchange Stockholm has stipulated for such offers. As a result, Borse Dubai has breached the law, it said.

Meanwhile, Nasdaq said it will sell its shares of London Stock Exchange to boost its bid for OMX.

"Borse Dubai acknowledges the conclusions announced by the Swedish Financial Supervisory Authority, and we look forward to continuing to work with them as our offer for OMX progresses," Borse Dubai said in a statement. "We continue to believe that our all cash offer of 230 Swedish crowns per share for OMX is in the best interests of OMX and its shareholders and represents long term value for OMX stakeholders by participating in new opportunities in high growth markets as part of the combined OMX-Borse Dubai group."

No precedent to guide evaluation of bid

Investors have little in the way of precedent to help them evaluate the seriousness of the takeover issue by Borse Dubai.

"I can confirm that we haven't experienced a situation like thisbefore," said Gent Jansson, deputy director general at the Swedish regulator.

OMX shares strengthened yesterday, rising by one crown to 243.00, to trade well above the Borse Dubai bid level.

- Reuters

Email this article

Printer-Friendly version

Email the Editor

Bookmark this article