Borse Dubai to file ownership application for OMX 'shortly'

Stockholm: The takeover battle for Nordic stock exchange operator OMX AB came a step closer to a resolution yesterday as Borse Dubai said it will file its ownership application for OMX with Sweden's financial markets regulator, Finansinspektionen, "shortly".

Nasdaq Stock Market Inc, which is battling Borse Dubai for control of OMX, filed its ownership application with the regulator at the beginning of July.

Finansinspektionen's ruling over Borse Dubai and Nasdaq's ownership applications will be crucial for the outcome of the two contenders' battle to take over OMX, as the regulator will decide if the bidders are "fit and proper" to run the stock exchange.

Finansinspektionen's assessment, which takes about 60 working days, will consider the owner's track record, competence and any conflicts of interest. Fredrik Lindqvist, a partner with Linklaters, which acts as Borse Dubai's legal adviser, said Borse Dubai will submit its ownership application with Finansinspektionen "shortly". He declined to specify further.

Nasdaq offer

Nasdaq filed its Swedish offer document with the Swedish regulator around August 20. Thomas Backteman, a senior partner with Hallvarsson & Halvarsson, which acts as a public relations bureau for Nasdaq, said that the timing of Finansinspektionen's assessment will be dependent on the US Securities and Exchange Commission's assessment of Nasdaq's US version of the offer document.

On August 17, Borse Dubai launched a competing $4 billion cash bid against Nasdaq's cash-and-share bid of May 25, which at the time was valued at $3.7 billion.

Meanwhile, the chief executive of Borse Dubai said yesterday the firm intends to be listed at some point.

"We intend to list Borse Dubai at an appropriate time," said Borse Dubai chief executive Per Larsson, appearing at an event that brought his firm and rival Nasdaq face-to-face publicly for the first time since a takeover battle for OMX broke out.

Larsson was responding to a question regarding concern about OMX under Borse Dubai given the degree of state ownership at the Dubai firm.

Borse Dubai is a holding company for the Dubai government's stakes in Dubai Financial Market and the Dubai International Financial Exchange.

Larsson did not give a potential time frame or mention possible locations for any listing.

Larsson and Adena Friedman, an executive vice-president of strategy at Nasdaq, both stressed they would seek to develop OMX and that the Nordic region would not suffer in terms of jobs or as a marketplace.

Friedman said Nasdaq was well-positioned to help OMX deal with new regulations coming into effect in November. "Standing still and waiting to see what happens is the surest way for Stockholm and OMX to be marginalised," she told the audience at an event organised by the Stockholm Chamber of Commerce.

Larsson emphasised that Borse Dubai and OMX were complementary and had no conflicting technology issues. He also repeated that part of the attraction of Borse Dubai would be its access to liquidity in the fast-growing Middle East and other markets.

He said that in terms of the Nordic region, it would be "business as usual" for OMX if Borse Dubai succeeded in acquiring the company. He added: "We will take OMX to the next level internationally."