Thursday, September 20, 2007

Selling the Stock Exchange: Dubai to buy large stake in Nasdaq

The infamously shady Dubai is attempting to purchase a 20 to 30 percent stake in both the New York and London stock exchanges. unbelievable.

Excerpts from the International Herald Tribune

If the deal is completed, Dubai would become the first Middle East government to own a large stake in an American stock exchange. It also is expected to become the largest single investor in Nasdaq.

The deal by the Borse Dubai would give Dubai a stake of 20 percent to 30 percent in Nasdaq, the largest electronic stock market in America, and about 30 percent in the London Stock Exchange, according to people who have been briefed.


Reports of a possible deal brought questions last night from lawmakers in Washington about potential compromises to security in the United States. The concerns were similar to those raised more than a year ago when another Dubai-owned company, DP World, tried to buy a company that managed port operations around the United States


"Should any government own any part of a major U.S. stock exchange?" asked Schumer


Borse Dubai plans to acquire its stakes in the New York and London exchanges through an elaborate series of steps growing out of its success in outbidding Nasdaq for the OMX Group for about $4 billion.

In the deal that is expected to be announced Thursday, Borse Dubai will complete the purchase of the OMX Group and then hand it over to Nasdaq in exchange for at least a 19 percent share in the New York exchange and Nasdaq's stake of about 30 percent in the London Stock Exchange, which is valued at about $1.8 billion. Read more

Where is the SEC?

Same Players. Different Scandal

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