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Nasdaq in Dubai Deal

A rivalry with Qatar appears to be brewing.

NasdaqI:IXIC reached a deal with Borse Dubai that will give Nasdaq control of the OMX stock exchange while giving the Dubai stock exchange a 20% stake in Nasdaq.

Under the deal, Nasdaq sold its 28% stake in the London Stock Exchange to Borse Dubai as well. Nasdaq said the moves "will provide us with a footprint unlike any other exchange."

Meanwhile, Qatar's state investment fund bought a 20% stake in the LSE, possibly presaging a struggle for control of that exchange with the Dubai exchange. Qatar said it wouldn't make a full bid for the LSE but reserves its right to do so.

The Wall Street Journal

reported that traders were saying Qatar was also buying up shares of the OMX, setting the stage for a possible face-off there as well.

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Nasdaq said in May that it would purchase the OMX for $3.8 billion, but Borse Dubai last month stepped in with a bid valued at around $3.9 billion.

The Dubai-Nasdaq deal comes in the wake of this year's formation of

NYSE Euronext