OMX board recommends acceptance of Borse Dubai bid
AFP/The Local · 2 Jan 2008, 10:04
Published: 02 Jan 2008 10:04 GMT+01:00
"The combination of OMX and Nasdaq will create a new leader in the exchange industry, establish a strong platform for future growth and reinforce the Nordic and Baltic region as a financial centre," OMX chairman Urban Bäckström said in a statement.
The unanimous vote by the OMX board was "only guidance," OMX spokesman Jonas Rodny told AFP, adding that the company's shareholders, who will begin voting on the deal next Monday, should make their decision within about a month.
The announcement came just days after U.S. authorities gave the green light for Borse Dubai's investment in Nasdaq, clearing the way for the U.S. high-tech stock market to combine with OMX.
Borse Dubai has made an all-cash 265 kronor ($49.95) per share offer for the Stockholm-based OMX.
Once Borse Dubai owns at least 67 percent of the shares of OMX, it will transfer all the stock it owns to Nasdaq. At the same time, Borse Dubai will make a minority investment in Nasdaq which in turn will take a minority holding in Dubai International Financial Exchange.
Borse Dubai is the holding company for Dubai International Financial Exchange and Dubai Financial Market.
The cash offer by Borse Dubai values OMX at 32 billion kronor ($4.9 billion).
OMX operates exchanges in Copenhagen, Stockholm, Helsinki, Reykjavik, Riga, Tallinn and Vilnius.
Following Wednesday's announcement, OMX's stock price was up 0.19 percent to 262 kronor on the Stockholm stock exchange, which as a whole was down 0.05 percent.