December 04, 2008

Qatar withdraws from OMX bidding process

It is reported that Qatar Holding has withdrawn its request for approval of a potential bid for OMX and opens the door to completion of a USD 5 billion takeover of the Nordic bourse operator by Borse Dubai and NASDAQ. Analysts said that the move by the Qatar firm doused hopes for a higher bid, leaving Borse Dubai and NASDAQ to reel in OMX.

Qatar Holding, in a statement, said that it is withdrawing its application to Sweden's financial watchdog to be considered a suitable owner of OMX as it was no longer needed.

It added that "Qatar Holding regards its investment in OMX as a very valuable asset and is actively considering a range of options to maximize returns from this holding. The said options, however, no longer currently require an application to the Swedish Financial Supervisory Authority which would have permitted Qatar Holding to increase its shareholding in OMX."

Qatar Holding, which owns 10% of OMX, 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.

It is noted that Borse Dubai and NASDAQ, rival bidders at first for OMX, agreed earlier in 2007 on a deal where Borse Dubai sweetened its takeover offer for OMX and pledged to sell the Nordic and Baltic bourse operator to NASDAQ in exchange for a 20% stake in the combined group. But the Qatar Investment Authority urged OMX shareholders to take no action and amassed a stake in the Sweden based firm through its investment vehicle Qatar Holding, emerging as a potential rival to Borse Dubai and NASDAQ.