Companies

Borse Dubai stake in OMX violated takeover rules

Borse Dubai will not face any charges over its violation of Swedish takeover law in connection with its bid for OMX, the Scandinavian exchange.

The Swedish Financial Supervisory Authority (Finansinspektionen) ruled that Borse Dubai’s purchase of a large OMX stake on 9 August breached takeover law, and that the press release that announced the purchase constituted a takeover bid.

Borse Dubai acquired the right to own 27.4% of OMX without first informing the Financial Supervisory Authority – Swedish law requires any purchase over 10% to have regulatory approval.

Although the regulator found Borse Dubai’s announcement of a formal takeover on 17 August means the breach of the law has been rectified, the incident will no doubt prompt questions as to the Middle Eastern exchange’s suitability to own OMX.

September 2007