DAVOS, Switzerland: Bob Greifeld, the chief executive of Nasdaq Stock Market Inc. said Thursday that it won t pursue any major acquisitions until the middle of 2009.
Speaking to Dow Jones Newswires on the sidelines of the World Economic Forum here, Greifeld said the US exchange is not contemplating a deal of size until we have loaded and locked in the value in its recent acquisitions of OMX AB, the Philadelphia Stock Exchange and the Boston Stock Exchange.
Nasdaq s $4.9 billion deal with Dubai Borse to buy OMX is due to close by the end of February, while the $652 million purchase of Philadelphia Stock Exchange and $61 million Boston Stock Exchange acquisition will close during the second quarter, Greifeld said.
The OMX deal followed months of fighting between Nasdaq and Borse Dubai after Dubai made a rival bid for OMX in August. But discussions between Dubai and Nasdaq led to the current deal, whereby Borse Dubai will buy OMX and then hand it over to Nasdaq for a combination of cash and new Nasdaq shares. Borse Dubai will then own a stake in the combined group while Nasdaq will also own part of Borse Dubai.
Greifeld said it is too early to estimate trading volumes through Dubai as a result of the deal, but that the aim of the joint venture is to be the financial center for the Middle East and the developing world.
He said he is concerned about recent market volatility and the downturn in the US economy, although Nasdaq has been a beneficiary of record trading volumes.
We know that we operate in the context of the broad market. But we believe that the stimulus package put forward by the president and (Treasury Secretary) Hank Paulson will do a lot to forestall any negative impact, he said.
