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OMX board unanimously endorses Borse Dubai bid.

Byline: Daily Star Staff

Summary: The board of Nordic stock exchange operator OMX AB on Wednesday said it had unanimously recommended Borse Dubai's $4.99 billion cash offer for the company. "The combination of OMX and Nasdaq will create a new leader in the exchange industry, establish a strong platform for future growth and reinforce the Nordic and Baltic region as a financial center.

The board of Nordic stock exchange operator OMX AB on Wednesday said it had unanimously recommended Borse Dubai's $4.99 billion cash offer for the company. "The combination of OMX and Nasdaq will create a new leader in the exchange industry, establish a strong platform for future growth and reinforce the Nordic and Baltic region as a financial center," OMX chairman Urban Baeckstroem said in a statement. "The Borse Dubai offer and the agreed, subsequent acquisition of OMX shares by Nasdaq, is also attractive to our shareholders."

The unanimous vote by the OMX board was "only guidance," OMX spokesman Jonas Rodny told AFP, adding that the company's shareholders, who will begin voting on the deal next Monday, should make their decision within about a month.

The announcement came just days after US authorities gave the green light for Borse Dubai's investment in Nasdaq, clearing the way for the US high-tech stock market to combine with OMX.

Borse Dubai has made an all-cash, $49.95-per-share offer for the Stockholm-based OMX.

Once Borse Dubai owns at least 67 percent of the shares of OMX, it will transfer all the stock it owns to Nasdaq. At the same time, Borse Dubai will make a minority investment in Nasdaq, which in turn will take a minority holding in Dubai International Financial Exchange. Borse Dubai is the holding company for Dubai International Financial Exchange and Dubai Financial Market.

The cash offer by Borse Dubai values OMX at $4.9 billion. OMX operates exchanges in Copenhagen, Stockholm, Helsinki, Reykjavik, Riga, Tallinn and Vilnius. Following Wednesday's announcement, OMX's stock price was up 0.19 percent on the Stockholm stock exchange, which as a whole was down 0.05 percent.

On September 20, Nasdaq and Borse Dubai settled a long battle in a deal that allows Nasdaq eventually to take over the Swedish firm. - AP, AFP, Reuters

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Publication:The Daily Star (Beirut, Lebanon)
Date:Jan 3, 2008
Words:390
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