Dubai given OMX bid deadline

Swedish regulator the Financial Supervisory Authority (FSA) has set a new and final deadline of Thursday for Borse Dubai to clarify whether it is making a takeover bid for Scandinavian exchange owner OMX.

The FSA said the exchange’s offer would be “called in for questioning” if it had received no answers by August 16, reported UK newspaper the Financial Times on Tuesday.

Borse Dubai last week bought a quarter of OMX for 230 Swedish crowns ($33.15) per share, topping a 208 crowns per share deal with Nasdaq agreed in May for the whole company worth $3.7 billion, which is backed by the OMX board and a key Swedish shareholder.

Borse Dubai’s tactics have raised eyebrows in Sweden after it acquired the right to own 27.4% of OMX without first informing the FSA. Swedish law requires any purchase of over 10% to have regulatory approval.

The FSA sent a letter to the Dubai exchange last week asking it explain its intentions with regards to OMX.

“We will not miss any deadline,” said Borse Dubai in a statement. “We have agreed with Sweden's FSA that we will hand in information no later than Thursday."

Borse Dubai will have to file formal offer documents within a month if the FSA declares their move as constituting a takeover bid.

The exchange can be fined up to $14 million if it contends and would then be banned from making a bid in future.

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