Dubai to BUY Large share of NASDAQ Stock Index! WHA?

[KoKo]

Dubai buys stake in Nasdaq

Published: 20, 2007 at 10:48 AM
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STOCKHOLM, , 20 (UPI) -- The Mideast government-controlled Dubai stock exchange Thursday agreed to buy a stake in New York’s Nasdaq and the London stock exchanges.

In a complex three-way deal announced in Stockholm, Borse Dubai gets a 19.9 percent interest in Nasdaq and 28 percent of the London group in a purchase from Nasdaq. Dubai in turn hands over to Nasdaq the OMX Group, a stock exchange based in Stockholm.

If the deal is completed, Dubai, part of the United Arab Emirates, would become the first Middle East government to own a large stake in an American stock exchange, the Wall Street Journal said, and would be expected to become the largest single investor in Nasdaq.

Nasdaq would become a strategic shareholder and the principal commercial partner of Dubai International Financial Exchange.

The transaction was being monitored in Washington. "This deal will raise serious questions that will need to be answered," Sen. Charles Schumer, D-N.Y, said in a statement.

http://www.upi.com/NewsTrack/Business/2007/09/20/dubai_buys_stake_in_nasdaq/7215/

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AND...ANOTHER VERSION ..........

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Dubai to Buy Stakes in Nasdaq, LSE; Strikes OMX Deal (Update3)

By Niklas Magnusson and Will McSheehy
Enlarge Image/Details

Sept. 20 (Bloomberg) -- Dubai, the fastest-growing financial center in the Persian Gulf, will buy stakes in Nasdaq Stock Market Inc. and London Stock Exchange Group Plc to diversify the economy from oil to financial services.

Borse Dubai, founded last month, will get a 19.99 percent stake and 5 percent of votes in Nasdaq, home to Microsoft Corp. and Intel Corp., Nasdaq said today. Dubai will also gain 28 percent of the London Stock Exchange, the biggest U.K. exchange, that Nasdaq is selling after two failed takeover bids. Nasdaq gets OMX AB, the Nordic bourse for which it dueled with Dubai. Qatar later said it bought a 20 percent stake in LSE.

Dubai ruler Sheikh Mohammed bin Rashid al-Maktoum is using record oil revenue and cash from a real estate and tourism boom to invest overseas. Exchanges worldwide have announced more than $64 billion in purchases and ventures since 2005 as they boost electronic trading and reduce costs.

``This seems like a very innovative way for Nasdaq of killing two birds with one stone, finding a buyer for the LSE stake at a reasonable price and combining with OMX at the original offer price they put,'' said Michael Long, an analyst at Keefe, Bruyette & Woods in London.

OMX gained 8.5 kronor, or 3.5 percent, to 249 kronor as of 11:36 p.m. in Stockholm trading. The stock earlier fell as much as 7 percent. It has traded higher than Dubai's initial bid of 230 kronor a share for the past three weeks amid speculation that Nasdaq would have to raise its offer.

Qatar Intervenes

The Qatar Investment Authority issued a statement today saying it bought a stake and doesn't currently intend to make an offer. Qatar, home to the world's biggest gas field, is also seeking purchases abroad and has bid 10.5 billion-pounds ($21 billion) for J Sainsbury Plc, the U.K.'s third-biggest supermarket chain.

``Neither QIA nor Qatar Holding currently intends to make an offer for the LSE but reserves its position in the event that a third party announces a firm intention to make an offer,'' it said.

Borse Dubai will buy OMX at 230 kronor a share, or 27.7 billion kronor ($4.22 billion), and sell the Stockholm-based exchange to Nasdaq for 11.4 billion kronor in cash, Nasdaq said. Nasdaq will in return grant the Dubai International Financial Exchange access to the Nasdaq brand and OMX trading technology. Borse Dubai will also be a beneficiary of about 18 million Nasdaq shares, an 8.4 percent stake, held in a trust for an eventual sale.

``This is clearly better all around'' than only buying OMX, Nasdaq Chief Executive Officer Robert Greifeld said on a conference call with journalists in Stockholm. ``This will strengthen our hand in the Nordic region.''

`Emerging Markets Center'

Nasdaq made a cash-and-stock bid for OMX in May, an approach that was endorsed by OMX management under CEO Magnus Boecker. Borse Dubai, headed by former OMX CEO Per Larsson, trumped Nasdaq's bid in August with an all-cash bid for OMX valued at 27.7 billion kronor.

``Our primary objective is to build a world-class, growth- oriented exchange out of Dubai and to become the center for capital-markets activities in the emerging markets,'' Borse Dubai Chairman Essa Kazim said in the statement.

Dubai's bid for OMX threatened to foil Nasdaq's latest attempt to expand into Europe, after the U.S. market failed to take over the LSE. Greifeld redoubled efforts to gain control of OMX before shareholders could vote on Dubai's superior bid and in August opted to sell the LSE stake to focus on OMX instead.

Much MORE at.........

http://www.bloomberg.com/apps/news?pid=20601087&sid=aAcrG5.TfYfc&refer=home

[blm]

1. Who cares? We've been sounding the alarm on these BCCI operators and their push

to control our country and most of DU could give a flying eff.

The same people behind BCCI - the same people Bush was going to give our ports. The same people funding global terrorism. The same people buying control of our newsmedia. The same people who comprise the BFEE.

But hey - it's just coincidence.


http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x1857898

[KoKo]

2. Who CARES? Well...I do...

:shrug: why don't YOU?

[blm]

3. Obviously I do - I go to those threads all the time.

I was being facetious about DU's concerns over global fascism. They only have 1000 puzzle pieces to access, with most of the pieces in place and on record, but they're waiting for CNN to put it together for them - then they'll wait and see if Bill Clinton has an explanation they can hang their hat on.

Pretty. Pretty. Pretty. Damn. Sad.

[terisan]

4. If We the People in the US thru our govt bought a stake in a private company=socialism

and that would be BAD. But a foreign govt can do the same thing and that is OK? Republican Economics seems to be the End of America as we knew it.

[sicksicksick_N_tired]

5. I wish you would link or kick earlier threads on this issue because they provide perspective.

No offense to you, KoKo. I just hate to see those threads providing multi-faceted perspectives lost on this board.

[KoKo]

6. What? You want me to do a search on Dubai? Give you more background?

"Google" is your friend....:eyes:

[KoKo]

7. .... this story is getting lost in O.J. Fog and the rest of the Crap thrown at us...

:kick:

[KoKo]

8. Another Kick...because this will get lost in O.J. stuff........

:kick:

[KoKo]

9. On CNN this morning Sen Schumer said that his committee will study this

and CNN's Financial Consultant thought that Dubai's investment would be a good thing because it would save us all money on our stock transactions.

[melm00se]

10. This "the end is near" cries

that the US is being bought up by foreigners is very reminiscent of the 80's when Japan, flush with cash, bought everything in sight...the same fear happened then too.

What happened?

Their economy, growing far faster than was sustainable, stuttered and fell...and many of the purchases were sold off to bring the cash home but at the time there were concerns by some that we would become "Japan West".

Things get bought, things get sold. it happens.

[blm]

13. Sure, except this criminal outfit was also behind BCCI -

Bush - Bin Laden - Khasshoggi - Nidal - AQ Khan - Marc Rich ring a bell?

Hardly benign.

[SoCalDem]

11. This is what happens when we are a debtor nation..

and a capitalist/fiscally cannibalistic country,..

It;s the "free traders" in action.. :grr:.. they would sell their granny if her "components" were worth more than her cookie-baking capabilities..

[junkiebrewster]

12. It's more of a stock swap...

Nasdaq will end up owning a chunk of Dubai's market.

Per your article: "Nasdaq would become a strategic shareholder and the principal commercial partner of Dubai International Financial Exchange."

[blm]

17. Still global fascism any way you cut it.

And it's not like Dubai is just like any other corporation doing business. BCCI, AQ Khan, Bush-BinLaden-Bath, Abu Nidal, Mark Rich, Adnan Khashoggi should ring some alarm bells, wouldn't you say?

[nadinbrzezinski]

14. Thanks and K&R

lets see if the fog lifts

[The Straight Story]

15. Sen Menendez not too happy with it either (posted this yesterday - 0 replies, taser thread though...

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x1857665

DUBAI PURCHASE OF MAJOR STAKE IN NASDAQ DESERVES EXAMINATION, SAYS SEN. MENENDEZ

Menendez applauds NASDAQ for submitting to CFIUS process, calls for "vigorous and thorough" review

Thursday, September 20, 2007

WASHINGTON – The Borse Dubai stock exchange, which is controlled by the Dubai government, is announcing today that it will purchase a major share in the NASDAQ exchange, as well as the London Stock Exchange.

U.S. Senator Robert Menendez, who was one of the first to raise concerns over the ill-fated Dubai ports deal last year, released the following statement:

“Certainly, the integrity of our financial markets is vital to our national stability and security, and it is wise to know everything we can about the controlling interests, particularly if foreign governments are involved. These are uncharted waters, and we must ensure that foreign government ownership does not have the potential to disrupt the market.

“NASDAQ has announced it will submit to the CFIUS review process – that is the right move, and I applaud them for undertaking it. The review must be vigorous and thorough, answering all lingering questions. The more information and understanding we have, the more we can be certain of the stability of our markets.”

[MazeRat7]

16. Duabi gets 3 things from NASDAQ and NASDAQ gets control of the OMX (Nordic Stock Exchange)

Actually Dubai will get three things from Nasdaq: $1.7 billion in cash, a 20% stake in Nasdaq itself, and a 28% stake in the London Stock Exchange.

In return NASDAQ will get the Nordic stock exchange OMX which it has wanted for sometime.

MZr7