Qatar close to buying stake in LSE
Qatar is near a deal to buy a stake in the London Stock Exchange from Nasdaq Stock Market, which would propel the emirate into the vanguard of global financial markets, The Wall Street Journal reported on Monday.
By Agencies |
NEW YORK: Qatar is near a deal to buy a stake in the London Stock Exchange from Nasdaq Stock Market, which would propel the emirate into the vanguard of global financial markets, The Wall Street Journal reported on Monday.
The Nasdaq bought the nearly 30 per cent LSE stake in 2006 when it was trying to acquire the London stock market, but decided to sell it after the LSE struck a takeover deal with the Milan stock exchange group, Borsa Italiana.
Nasdaq's stake is valued at 856 million pounds, or $1.72 billion, based on the Friday closing price in London. The stake is to be diluted to 22 per cent of the LSE after the LSE completes its acquisition of Borsa Italiana.
Other potential buyers have shown little interest in Nasdaq's auction, notably the German exchange operator Deutsche Boerse, a two-time suitor of the LSE, according to the Journal.
It was not clear whether the move by the Qatar Investment Authority would succeed or how much the Middle Eastern country is offering, the newspaper said.
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Qatar, "for now," is not seeking to buy all of LSE, the Journal said, citing a person familiar with the matter. The investment fund may not make the purchase alone, it is holding exploratory talks with other Middle Eastern investment funds about taking a junior role, the newspaper said, citing "a person familiar" with the discussions.
Qatar, like its neighboring emirate, Dubai, is seeking to become the Middle East's center of global trading. Both emirates have an independent market regulator.
Dubai is currently vying with Nasdaq to buy OMX, the Nordic stock exchange operator.
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