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Dubaiya Bush
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US Treasury to Investigate Nasdaq Sale
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/09/21/cnasdaq121.xml
The US Treasury is to investigate Nasdaq's sale of
a 19.9pc share stake to Borse Dubai amid Capitol Hill
concerns that the transaction may harm national security.
The Treasury, as leader of the inter-agency Committee
on Foreign Investment in the United States (CIFUS),
will assess whether the sale of such a critical piece of
American infrastructure to a Middle Eastern buyer is appropriate.
Officials working for Treasury Secretary Henry "Hank" Paulson
will lead the probe, working with the Departments of Justice,
Commerce, State and Defence.
Senator Christopher Dodd, the head of the US Senate
banking committee, said the move needed a "careful review"
to ensure "that our nation's security is protected".
The comments echo those made about Dubai's DP World
two years ago. The port operator eventually sold
US operations bought through its purchase of P&O
after fierce opposition on security grounds.
Since then, legislation has been approved to overhaul
the CIFUS review process and increase scrutiny.
President George W Bush yesterday confirmed the
investigation into the transaction, saying:
"We are going to take a good look at it."
The backlash came after frantic share-trading between
four of the world's largest stock exchange groups and
one of the richest sovereign wealth funds.
It began when Nasdaq sold a 28pc stake in the
London Stock Exchange to Borse Dubai, retaining a 3.5pc stake.
Borse Dubai bought a 19pc stake in Nasdaq, capping its
voting rights at 5pc, with Nasdaq taking a 33pc stake in
Borse Dubai, while allowing the American exchange eventual
control of Scandinavian exchange OMX.
In addition, the Qatar Investment Authority, bought a
20pc stake in the LSE in the open market, taking out
existing investors Paulson and Heyman Investments,
and took a strategic 9.9pc stake in OMX.
The LSE, is set to use its new Middle Eastern partnership
to expand into the region.
Nasdaq meanwhile will face a series of crucial shareholder
votes to have its transactions approved. Chief executive
Bob Greifeld is confident of support, but is likely to
face questions as to why he accepted Borse Dubai's offer
for the LSE shares when, given the price the QIA paid in
the open market, it could have banked an extra $200m.
Shares in the LSE rose
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/09/21/cnasdaq121.xml
The US Treasury is to investigate Nasdaq's sale of
a 19.9pc share stake to Borse Dubai amid Capitol Hill
concerns that the transaction may harm national security.
The Treasury, as leader of the inter-agency Committee
on Foreign Investment in the United States (CIFUS),
will assess whether the sale of such a critical piece of
American infrastructure to a Middle Eastern buyer is appropriate.
Officials working for Treasury Secretary Henry "Hank" Paulson
will lead the probe, working with the Departments of Justice,
Commerce, State and Defence.
Senator Christopher Dodd, the head of the US Senate
banking committee, said the move needed a "careful review"
to ensure "that our nation's security is protected".
The comments echo those made about Dubai's DP World
two years ago. The port operator eventually sold
US operations bought through its purchase of P&O
after fierce opposition on security grounds.
Since then, legislation has been approved to overhaul
the CIFUS review process and increase scrutiny.
President George W Bush yesterday confirmed the
investigation into the transaction, saying:
"We are going to take a good look at it."
The backlash came after frantic share-trading between
four of the world's largest stock exchange groups and
one of the richest sovereign wealth funds.
It began when Nasdaq sold a 28pc stake in the
London Stock Exchange to Borse Dubai, retaining a 3.5pc stake.
Borse Dubai bought a 19pc stake in Nasdaq, capping its
voting rights at 5pc, with Nasdaq taking a 33pc stake in
Borse Dubai, while allowing the American exchange eventual
control of Scandinavian exchange OMX.
In addition, the Qatar Investment Authority, bought a
20pc stake in the LSE in the open market, taking out
existing investors Paulson and Heyman Investments,
and took a strategic 9.9pc stake in OMX.
The LSE, is set to use its new Middle Eastern partnership
to expand into the region.
Nasdaq meanwhile will face a series of crucial shareholder
votes to have its transactions approved. Chief executive
Bob Greifeld is confident of support, but is likely to
face questions as to why he accepted Borse Dubai's offer
for the LSE shares when, given the price the QIA paid in
the open market, it could have banked an extra $200m.
Shares in the LSE rose
