Two rival Gulf states vying for regional leadership in the global consolidation of exchanges have secured nearly 50% of the London Stock Exchange. Qatar Investment Authority and Borse Dubai acquired 48% of the LSE through a complex series of deals which are realigning ownership of Europe’s exchanges. Borse Dubai secured 28% of the LSE as part of a wider deal with the US-based Nasdaq designed to settle their protracted battle for control of the Nordic exchange operator OMX. The Dubai group bought most of Nasdaq’s 31% stake in the LSE for £14.40 a share in cash. In return, it will take a 19.9% stake in the combined Nasdaq/OMX group and receive cash. But the move enraged QIA, which until Tuesday believed it would clinch much of the LSE stake for itself. On Thursday, QIA bought nearly 20% of the LSE, sparking expectations of a bidding war. LSE welcomed the Qatari move because it sees QIA as a passive investor.

This entry was posted by Gwen Robinson on Friday, September 21st, 2007 at 5:37 and is filed under Capital markets, M&A. Tagged with Borse Dubai, lse, nasdaq, omx, QIA. Edit this entry.