Deadline extended

The Swedish body said it had given Borse Dubai until January 15, 2008 to file formal offer documents on its takeover offer for OMX, extending the deadline from November 1.

OMX's board is considering a cash offer of 265 crowns per share from state-run Borse Dubai, which has teamed up with US. exchange Nasdaq to buy the Nordic and Baltic exchange owner. A report from Stockholm said the offer has received acceptances representing 47.6 per cent of OMX shares.

Borse Dubai and Nasdaq improved the takeover offer for OMX to $4.9 billion last month and sought to boost their holding in the Scandinavian exchange after the Qataris also started buying OMX shares.

According to sources close to the two Gulf exchanges, the swap negotiations were still very preliminary. Should Qatar take all of Borse Dubai’s 28 per cent stake in the LSE, it would own more than 30 per cent of the London-based exchange’s stock and would have to make an offer for the LSE under UK takeover rules, the Wall Street Journal had reported, citing people familiar with the matter. However, sources at Borse Dubai and Qatar Investment Authority declined to comment.

In the proposed deal with Nasdaq Stock Market, Borse Dubai wants to buy OMX and then transfer ownership to Nasdaq in return for 19.9 per cent stake.

The Sunday Times reported without citing sources that QIA and Bourse Dubai intend to exchange the QIA's 10 per cent stake in OMX for Dubai's 14 per cent stake in the LSE, worth £1.2 billion, in a move that would effectively make the LSE bid-proof. Other reports suggested the potential swap could give Qatar as much as 29.9 per cent of the LSE.

Analysts said the swap would end a protracted battle to consolidate the global exchange sector, which has seen Dubai joining Nasdaq's bid for the Scandinavian exchange. The LSE has also fended off five takeover attempts in less than three years, including two from Nasdaq.