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Was Dubai exit good or bad for Nasdaq?
23 February 2010
Nasdaq OMX is unlikely to be too concerned by losing its stake in Nasdaq Dubai, a senior exchange analyst has told FOW.
Read more:
[Nasdaq OMX]
[Nasdaq Dubai]
[Dubai]
[Bernardo Mariano]
[Equity Research Desk]
On December 22 Nasdaq OMX announced it would transfer its
33.3% stake in the budding exchange to Dubai Financial Market, in return for a
1% stake in DFM.
Bernardo Mariano, a partner at the Equity Research Desk, a
New York analytics firm, argues that Nasdaq had only ever valued its deal with
Borse Dubai, the exchange’s holding company, as a strategic alliance, rather
than as a profit-making venture.
“At the time, it was important for Nasdaq,” Mariano said.
“The most important factor they got out of the deal was not to get dragged into
a price war over OMX with Borse Dubai. Look at what they paid. That was the
strategic arrangement for them, so I don’t think they’ll be too worried. They
will have agreed to the sale.”
Nasdaq OMX’s new 1% stake in DFM is valued at around $39m
and entitles it to keep one...
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