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Borse Dubai under regulatory pressure over OMX bid

Borse Dubai under regulatory pressure over OMX bid

Borse Dubai is coming under new regulatory pressure in its tussle with Nasdaq Stock Market Inc. to win control of the Nordic stock exchange operator OMX, Swedish officials said Wednesday.
Prosecutors would decide "within the next few days" on whether to launch an investigation into Dubai's OMX bid, Eva-Lisa Lennstrand, a spokeswoman for Sweden's National Economic Crimes Bureau, told Dow Jones Newswires.
Meanwhile, Nasdaq has asked Sweden's Securities Council, a self-regulatory body promoting good standards on the Swedish stock exchange market, to investigate whether Borse Dubai's takeover offer for OMX is in accordance with practice on the Swedish market, a source familiar with the matter told Dow Jones Newswires.
The increased pressure on Borse Dubai comes after Sweden's Financial Supervisory Authority ruled last week that the company broke the law in the run-up to its bid for OMX, but did not impose any sanctions.
The Swedish regulator said Borse Dubai violated the law when it announced on Aug. 9 _ a week before its formal bid _ that it had purchased 4.9 percent in OMX and had options for a further 22.5 percent.
The regulator said the Aug. 9 announcement in effect amounted to a public takeover offer, and that Borse Dubai "had not undertaken to follow the rules that Nordic Exchange Stockholm has stipulated for such offers."
Nasdaq's request to the Securities Council _ a body which is financed by Swedish listed companies and institutional investors _ is a further sign Nasdaq wants to demonstrate that Borse Dubai breached rules on the very market it wants to run, a source familiar with the matter said.
Rolf Skog, head of the Securities Council, said that although it has no legal power, its recommendations are usually followed by market participants.
Lennstrand said that if the National Economic Crimes Bureau decides to make a preliminary investigation and finds enough material to support a guilty verdict, the body would have to prosecute Borse Dubai.
Borse Dubai was not immediately available for a comment.
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Jenny Clevstrom is a correspondent for Dow Jones Newswires.


Updated : 2021-05-12 11:33 GMT+08:00