Sweden backs proposed sale of OMX

Stockholm: The Swedish government yesterday backed the proposed sale of Nordic and Baltic exchange owner OMX to Borse Dubai and Nasdaq.

Borse Dubai has teamed up with US exchange Nasdaq to buy OMX for 265 crowns per share, after which it plans to transfer the company to Nasdaq in exchange for a stake in the combined group.

"The government decided today to instruct financial markets minister Mats Odell to accept the offer from Borse Dubai on behalf of the state," the government said.

The Swedish state owns a 6.6 per cent stake in OMX.

Regulators have approved the deal and the OMX board last month backed it.

Bad news

Earlier yesterday, OMX reported a drop in fourth-quarter operating profit to 255 million Swedish crowns ($39.96 million).

That compared with 320 million crowns in the third quarter and 355 million in the year-earlier period.

Revenues rose to 1.1 billion crowns from one billion a year ago. OMX said its board did not propose a dividend.

The exchange chose to focus on the full-year results, which showed operating profit up to 1.3 billion crowns from 1.2 billion in 2006.

"2007 was a turbulent year for OMX," said OMX chief executive Magnus Bocker in a statement.

"Most people will recall the turns of events surrounding the merger with Nasdaq... Above all else, this was the year in which OMX delivered its best earnings ever."

Borse Dubai has teamed up with US exchange Nasdaq to buy the Nordic exchange owner for 265 crowns per share, after which it would transfer OMX to Nasdaq in exchange for a stake in the combined group.

Regulators have approved the deal, and the OMX board last month backed it, though the Swedish government has not given its final sign-off. Government advisers last week said a Borse Dubai acquisition would be beneficial to the Swedish marketplace.

Sweden's financial markets minister, Mats Odell, was due to hold a news conference later in the day.