No More Bidders But Watch for a Share Swap Shuffle?


Other bidders Unlikely but the deal may get more complex…


A third bidder for OMX is unlikely, It is too much of a hybrid to really attract anybody – hence the curiosity of NASDAQ’s bid which seems to have lacked emphasis on the IT side (the bit where a lot of profit upside could potentially lie given current return on capital). Dubai ont he other hand wants OMX for its technology arm where they sense a better return being feasible and indeed a great “diplomatic arm” in IT development to help promote the Dubai Financial Centre project.

Here’s a theory: The end result of the NASDAQ deal may be a share swap between NASDAQ and Dubai. Dubai want OMX most for its IT but if they had a chance to have a run at the London Stock Exchange don’t be surprised if the men in the Emirate try to exchange their OMX share stake as part of a deal to get the NASDAQ LSE shareholding.

That said, there is yet a possibility Dubai might be able to negotiate a break-up of OMX too, taking the LSE stake and the IT side while NASDAQ gets the European trading content/platform…

True, Singapore are keen on that LSE stake as well but NASDAQ ultimately need to conclude a deal having seen LSE slip away twice and with an inability to match Dubai in terms of reserves when it comes to a straight bidding war for OMX.

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