TheStreet.com reports that Borse Dubai has acquired a 20% stake in the Nasdaq stock exchange. The deal also gave Dubai a 28% stake in the London Stock Exchange.
Nasdaq reached a deal with Borse Dubai that will give Nasdaq control of the OMX stock exchange while giving the Dubai stock exchange a 20% stake in Nasdaq.
Under the deal, Nasdaq sold its 28% stake in the London Stock Exchange to Borse Dubai as well. Nasdaq said the moves "will provide us with a footprint unlike any other exchange."
Meanwhile, Qatar's state investment fund bought a 20% stake in the LSE, possibly presaging a struggle for control of that exchange with the Dubai exchange. Qatar said it wouldn't make a full bid for the LSE but reserves its right to do so..
The fact that two of the 9/11 hijackers came from the United Arab Emirates has raised concerns but the Bush Administration doesn't seem too interested in stopping it. You might recall the UAE ports deal that President Bush seemed determined to let happen. It sounds like there will at least be a review of the Nasdaq-Dubai deal.
The International Herald Tribune has more on the recent Nasdaq and London exchange deals. Here's a Reuters video report on the Dubai-Nasdaq news.
TheStreet.com 