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U.S. stock market operator Nasdaq revealed last week that it
would offer 152 Norwegian crowns ($17.98) per share for Oslo
Bors, outbidding Euronext. Nasdaq formally made its offer early
on Monday.
As it did, Euronext, which had offered in late December to pay
145 crowns per share, valuing the company at 6.24 billion crowns
or $739 million, said it might submit a new bid.
"Euronext will assess options to adjust its offer and will
communicate when appropriate," the Paris-listed company said in
a statement.
Olso Bors' CEO Bente Landsnes said that Nasdaq's offer was
better than the one filed by Euronext.
The bidding battle for one of the last independent stock markets
in northern Europe reflects consolidation across the industry.
While Nasdaq has the backing of Oslo Bors's management and its
largest shareholder, Norwegian bank DNB, Euronext has the
support of a narrow majority of the Norwegian exchange's
shareholders.
Those shareholders had committed "irrevocably" to tender their
shares at the offered price even if a higher rival offer came
out.
For Nasdaq to win control it would need either Norwegian
regulators to back its bid over Euronext's or for the
shareholders who committed to Euronext to let their commitments
lapse, which could happen from August, Nasdaq Nordic CEO Lauri
Rosendahl told Reuters.
Even with the support of a majority of Oslo Bors's shareholders,
Euronext may decide to raise its offer to fend off Nasdaq.
Euronext was invited to bid for the company by a group of Oslo
Bors shareholders without informing the company's management.
When the acquisition attempt was made public, the board of Oslo
Bors said it would look to the market for a rival bid to make
sure shareholders would get the best deal.
Euronext, which runs exchanges in Paris, Brussels, Amsterdam,
Lisbon and Dublin, is looking to expand its portfolio but
remaining opportunities are scarce as market operators either
already belong to large groups or because their shareholders
want to remain independent.
Large-scale mergers have also met opposition from competition
regulators, who have blocked a planned tie-up between Deutsche
Boerse and the London Stock Exchange.
For Euronext, expansion into Norway would help diversify its
revenue from share and derivative trading, given Oslo Bors's
leading position in seafood derivatives as well as oil services
and shipping.
Euronext's largest shareholders back the takeover attempt, the
company's said.
($1 = 8.4455 Norwegian crowns)
(Reporting by Inti Landauro, Sudip Kar-Gupta; additional
reporting by Terje Solsvik; editing by Louise Heavens and Jason
Neely)
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