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Analysis: was Dubai exit good or bad for Nasdaq?


Nasdaq OMX is likely to be unfazed by losing its stake in Nasdaq Dubai, a senior exchange analyst has told Futures and Options Intelligence.

Bernardo Mariano, a partner at the Equity Research Desk in New York, argued 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.”

On December 22 it was announced that Nasdaq OMX would sell its 33.3% stake in the fledgling exchange to Dubai Financial Market, the older...

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