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Stockholm: Talks between Qatar Holding and Borse Dubai about exchanging shares in the London Stock Exchange and Nordic rival OMX have progressed and a deal is close, said people familiar with the matter.
The sides have been exploring a deal, which the sources said could now come within days or weeks, whereby the Qataris would exchange their 10 per cent stake in OMX for at least part of the stake held by Borse Dubai in the LSE.
Qatar Holding had earlier withdrawn its request for approval of a potential bid for OMX, opening the door to completion of a $5 billion takeover of the Nordic bourse operator by Borse Dubai and Nasdaq.
The Qatari investment vehicle, a subsidiary of the Qatar Investment Authority, said it was withdrawing its application to Sweden's financial watchdog to be considered a suitable owner of OMX as it was no longer needed.
Sweden's Financial Supervisory Authority said in a statement it was ending its scrutiny of Qatar's application dated October 2.
Qatar Holding had been seen as a potential rival suitor for OMX to state-run Borse Dubai which, teaming up with US exchange Nasdaq, has offered 265 crowns per share for the bourse operator.
OMX shares fell on the news and were down 2.5 per cent to 259 crowns by 1311 GMT, just underperforming a 2.2 per cent fall in the broader market. An analyst said that while the news was not unexpected, it did douse hopes for a higher bid. "The share was trading above the offer level, showing that some people had hoped for another offer," West LB analyst Johannes Thormann said.
Borse Dubai and Nasdaq, rival bidders at first for OMX, agreed earlier this year on a deal where Borse Dubai sweetened its takeover offer for OMX to about $4.9 billion and pledged to sell the Nordic and Baltic bourse operator to Nasdaq in exchange for a 20 per cent stake in the combined group.
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