The lack of transparency and regulation of a market owned by one shareholder could undermine the credibility of Scandinavian exchange owner OMX, its chief executive has said.
Speaking following a meeting between OMX management and representatives of Borse Dubai, Magnus Böcker said it was not clear how a possible takeover bid by the Dubai-owned holding company would benefit customers, UK newspaper the Financial Times reported on Tuesday.
“I appreciate the visit but I am still uncertain about any customer benefits,” Böcker told the newspaper.
The chief executive also expressed concern over the way Borse Dubai had built up its stake in the company, which has drawn the attention of Sweden’s financial regulator.
Borse Dubai met with OMX on Monday to discuss its plans for the exchange after it took control of shares and options for a stake of around 27.5% last week, sparking speculation that it would launch a takeover bid.
Borse Dubai, a holding company for Dubai government’s stakes in Dubai Financial Market (DFM) and Dubai International Financial Exchange (DIFX), also held discussions with the Swedish government on Monday.
Böcker said talks covered Borse Dubai’s plans for ownership, the reason Borse Dubai acquiring its shares in the manner it did, and the benefit of a takeover by the holding company to OMX-owned exchanges, reported the Financial Times.
The chief executive said he left the discussions unimpressed with the answers he received, but said any future bid would be dealt with in accordance with rules and regulations.
Dubai’s offer to OMX at 230 Swedish crowns ($33.15) per share betters a $3.7 billion takeover bid in May by Nasdaq at 208 crowns, though OMX management and a key Swedish shareholder favour Nasdaq’s bid.
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