HALT IN OMX SPARKS MARKET BID SPECULATIONS
The Associated Press
International Herald Tribune, France
May 24 2007
STOCKHOLM, Sweden: A trading halt in Nordic bourse operator OMX AB
on Thursday spurred market rumors that the Stockholm-based company
could be involved in a merger.
In a brief statement, the Stockholm stock exchange said the suspension
had been made at the company’s request and that a news announcement
was expected before market opening on Friday.
OMX spokesman Niclas Lilja declined to comment on the reasons for the
trading halt, saying only the news would be unveiled in tomorrow’s
statement.
The Stockholm-based company – the largest bourse in the Nordic region
and the result of seven merged Nordic stock exchanges in the past three
years – has repeatedly said it is continously eyeing the stepped-up
consolidation climate in the sector, and that it will continue to
evaluate its strategic opportunities.
It has kept relatively quiet on specifying those opportunities, but
in December it launched a ~@4.2 million (US$5.65 million) bid for
the Ljubljana Stock Exchange in Slovenia, and in April it agreed to
buy the Armenian bourse and the Central Depositary of Armenia.
Sweden’s new center-right government, which holds 6.75 percent in OMX,
has also put it on its up-for-sale assets list as it wants to reduce
state ownership in Swedish companies.
Shares in OMX rose 3.2 percent before the suspension.
In mid-April, shares in the company soared after a news report said
OMX had received a 23 billion kronor (~@2.5 billion; US$3.36 billion)
offer from Nasdaq Stock Market Inc. in the U.S., but both bourses
denied an offer had been made.
At the same time, OMX said it was in "exploratory discussions with
several exchanges and other market venues regarding possible forms
of cooperation," but did not issue any further details.
A Stockholm-based analyst, who requested anonymity, said the trading
halt was most likely due to takeover news.
"There was a rumor yesterday that OMX would be taken over. My guess
is that that this is about M&A activity," he said.
The London Stock Exchange has also been rumored to be interested in
the Nordic bourse operator.