Europe fears sovereign fund invasion
Wednesday, 17 October 2007
PARIS, Oct 16 (AFP): The increasing clout of state-run investment funds is causing concern in European countries, where policymakers are anxious to protect industry and strategic assets from foreign takeovers.
According to a study by Morgan Stanley, these so-called sovereign wealth funds, which mainly come from emerging nations like China, Russia and oil-exporting countries, have 2,800 billion dollars (1,900 billion euros) in assets and are multiplying their acquisitions and spectacular shareholdings.
In a case in point, Qatar Holding and Dubai Borse, a public holding, have just bought 24 and 28 per cent respectively of the London Stock Exchange and are currently in a battle to take control of the Nordic stock exchange operator OMX.
Dubai has formed an alliance with Nasdaq, of which it already owns nearly 20 per cent.
According to a study by Morgan Stanley, these so-called sovereign wealth funds, which mainly come from emerging nations like China, Russia and oil-exporting countries, have 2,800 billion dollars (1,900 billion euros) in assets and are multiplying their acquisitions and spectacular shareholdings.
In a case in point, Qatar Holding and Dubai Borse, a public holding, have just bought 24 and 28 per cent respectively of the London Stock Exchange and are currently in a battle to take control of the Nordic stock exchange operator OMX.
Dubai has formed an alliance with Nasdaq, of which it already owns nearly 20 per cent.