Nasdaq: Dancin’ with itself?
August 9th, 2007, filed by Jonathan Keehner
Poor Nasdaq: just out of one international mess, the electronic exchange gets thrust into another. And this time it’s in Stockholm. By way of Dubai.
Nasdaq’s bid for Scandanavian exchange OMX - which looked like a done deal - is in question after Borse Dubai said it intends to buy at least a quarter of Stockholm-based exchange…at a price that trumps Nasdaq’s offer.
Dubai has been diversifying beyond sail-shaped hotels. Its bourse - which consolidates government holdings in the Dubai Financial Market and Dubai International Financial Exchange - was formed earlier this month and is seen as a vehicle for acquisitions. And the state-owned holding company, headed by a former OMX chief, has a shot at owning OMX.
That’s bad news for Nasdaq, which has been long under pressure to do something in the consolidating exchanges space: Frankfurt-based Deutsche Borse is buying New York-based options giant ISE while the top U.S. commodities exchanges, CME and CBOT, just combined. And arch-rival New York Stock Exchange merged with Paris-based Euronext.
While the NYSE was out charming the French, Dutch, Portuguese and Belgians into selling Euronext, Nasdaq’s attempts at a partner fell flat. A hostile run at the London Stock Exchange met with derision - and under 1 percent of acceptances. That left a rebuffed Nasdaq owning about a third of the unwilling LSE - and in the awkward position of blessing the LSE’s subsequent bid for Borsa Italiana.
If the Gulf bourse wins out on OMX, an unrequited Nasdaq could think about sticking closer to home and focusing on regionals. They seem willing and Nasdaq’s domestic business remains strong.
Plus shareholders - having lost a tenth of their value since the failed LSE run - might like to hear CEO Bob Greifeld is putting his passport down.
