Dubai bourse may buy 25% in OMX

STOCKHOLM: Borse Dubai, owner of the emirate’s two stock exchanges, plans to buy at least 25% of Sweden’s OMX, potentially derailing a 25.1 billion-krona ($3.7 billion) takeover from Nasdaq Stock Market.

The exchange “is in the process” of purchasing OMX shares for 230 kronor each, the company said today. The price is 11% higher than the 208.1 kronor that New York-based Nasdaq agreed to pay for the biggest Nordic exchange operator in May. OMX stock rose as much as 6.9% to 232 kronor.

Dubai’s bid raises the prospect of a takeover battle for OMX as Nasdaq expands across the Atlantic to compete with NYSE Group, which acquired Euronext in April.

Nasdaq failed in its attempt to acquire London Stock Exchange Group in February. Dubai has used billions of dollars of oil revenues for acquisitions and plans to invest in financial services to lure companies to the Gulf.

Kazim, chairman of Borse Dubai, declined to comment, as did Heidi Wendt, a spokesperson for OMX. HSBC Investment Banking is advising Dubai on its bid, while Credit Suisse Group is advising OMX.