Qatar group buys 20pc stake in LSE
London, September 20, 2007
The Qatar Investment Authority said on Thursday that a wholly owned subsidiary, Qatar Holding, had bought a 20 percent stake in the London Stock Exchange.
Earlier, UAE group Borse Dubai agreed to buy a 28-percent LSE holding from the US Nasdaq stock market as part of a deal to jointly take over Nordic operator OMX.
With the new deals, the UAE and Qatar are set to own nearly half of the London Stock Exchange.
The Qatar group said it did not plan to make an offer for the London exchange, but reserved its position if a third party were to make a bid for the exchange.
It said the LSE investment was for the long term.
The LSE did not comment on the Nasdaq sale, but welcomed the purchase by Qatar.
The LSE, Europe's largest share market, said it had a long relationship with the QIA and believes that given the strength of Qatar's economy and development of Doha as a major financial centre, there were 'significant opportunities' to build further the relationship to the benefit of both.
'The QIA has an impressive track record of making substantial long term investments in growth companies, so we are delighted to see that it recognises the Exchange's unique strategic position and excellent prospects,' LSE chief executive Clara Furse said in a statement.
'We look forward with confidence to delivering a full agenda and our wider global strategy,' she added.
The Qatar group said it did not plan to make an offer for the LSE but it reserved its position if a third party were to make a bid for the exchange.- Reuters