A Swedish economic crimes unit said on Wednesday it was considering an investigation into Borse Dubai’s $4 billion takeover offer for exchange owner OMX, and would decide within days whether to proceed. The move came as OMX said on Wednesday it had sent questions to Borse Dubai so its board could make a proper assessment of the Dubai firm’s $4 billion offer.
Earlier this month, state-owned Borse Dubai bid $4 billion for OMX, topping a $3.7 billion earlier cash-and-share bid from US exchange player Nasdaq.
The Swedish National Economic Crimes Bureau (EBM) said it was looking at Borse Dubai’s offer for OMX, but had not yet formally launched an investigation of the bid.
“Prosecutor Robert Engstedt is looking at the circumstances surrounding the bid from the Dubai exchange for OMX,” said EBM spokeswoman Eva-Lisa Lennstrand.
“He will in the next few days decide whether to open a preliminary investigation,” she said offering no further details.
OMX declined to say what questions it had asked Borse Dubai. A spokesman would only say they were typical queries relating to an offer.
“We won’t go into detail on the questions,” OMX spokesman Jonas Rodny said. “These are the questions you normally have.”
Sweden’s Financial Supervisory Authority (FSA) last week ruled that Dubai Borse breached Swedish law when it publicly announced interest in building a stake in OMX. The regulator said the announcement constituted a takeover bid and required proper documentation.
The regulator decided against a penalty because Borse Dubai had since made a formal offer and satisfied regulatory requirements.
The Swedish government is also waiting to hear the findings of an advisory panel, which is due to report in late September on the implications for the Swedish stock market if OMX were taken over by either Nasdaq or Borse Dubai.
The government, as well as watching the Dubai offer from a regulatory perspective, is also considering it as an investor. Sweden owns 6.6% of OMX and the government has previously announced it wanted to sell the stake.
Borse Dubai is the holding company for Dubai Financial Market (DFM) and Dubai International Financial Exchange (DIFX). It announced an all-cash bid of 230 crowns per share on August 17, after it said it had begun acquiring OMX shares on August 9.
Its offer topped an agreed cash-and-shares bid from US exchange Nasdaq, currently valued at 205 crowns per share or $3.7 billion. The Nasdaq offer was announced on May 25.
OMX shares finished down 1.4% at 240.50. The premium to the 230 crown Dubai offer level suggests the market believes Nasdaq could improve its terms.
OMX has, for the most part, stayed silent as Borse Dubai and Nasdaq have pressed their cases.
Apart from Wednesday’s announcement, its few public comments have included a statement on August 17 that it was studying the Dubai offer and a confirmation the previous week that it was meeting with Borse Dubai.
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