FORMER PM CATCHING HEAT OVER FAILED STOCK EXCHANGE DEAL
Mari Imedashvili

Georgian Business Week
Monday, October 12, 2009 – 06:54

The Georgian Stock Exchange has decided to issue new shares in
anticipation of investment by NASDAQ, a U.S. stock trading company,
GBC news agency reported Oct. 8.

As a result, NASDAQ OMX will become a majority stakeholder of GSE,
Giorgi Loladze, a GSE Supervisory Board Chairman, told the news
agency. He said a business proposal has been sent to NASDAQ officials.

GSE currently has 31 stakeholders. Bank of Georgia, TBC Bank, Cartu
Bank, Basis Bank, People’s Bank all own either direct or indirect
stakes in the company.

But Georgian Investments Group+, a brokerage company, which is one
of the stakeholders of GSE, says that GSE stakeholders missed to make
a favorable deal with NASDAQ OMX back in November 2007.

The brokerage company alleges that NASDAQ OMX was ready to pay more
than 2b EUR for GSE shares. However, at a November 5, 2007 meeting,
the Georgian Stock Exchange put off the matter which led to the
collapse of the offer.

Former Prime Minister Vladimer Gurgenidze, then chairman of the
Bank of Georgia’s Supervisory Board, was responsible, the investment
group says.

Gurgenidze was not immediately available for comment.

At the same time, NASDAQ OMX was in talks with Armenia’s Stock Exchange
and those negotiations ended successfully.

Stock exchange experts, according to GBC, say that NASDAQ’s interest
to acquire Georgian Stock Exchange could have been a highlight of 2007.

From: Emil Lazarian | Ararat NewsPress