Abu Dhabi's ruling family, advised by Goldman Sachs, has offered $1.5bn (£967m) for Dubai's 20pc holding in the LSE and its 17pc stake in Nasdaq, the US exchange. It has also agreed a $2.75bn valuation for Dubai stock exchange – DFM – as part on an agreement to merge Dubai's exchange with its own, called ADX.
Any discussion about Dubai selling its LSE stake is likely to prompt Qatar into making a counter offer for the shares.
Qatar Investment Authority (QIA) has a 15pc stake in the LSE that out-dates Dubai's own holding. When Dubai first bought its holding the Qataris were said to be furious. Insiders suggest they would be very uncomfortable with ownership changing hands and ending up with Abu Dhabi. QIA would likely offer a premium to Abu Dhabi for the shares but would need support from LSE shareholders to allow it to increase its stake above 29.9pc without having to bid for the whole company.
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