US Democratic legislators have called for a national security review of a deal that would give Dubai's state-owned stock exchange control of 20 per cent of Nasdaq.
Nasdaq Stock Market and Borse Dubai struck a deal yesterday in which Dubai would get Nasdaq's stake in the London Stock Exchange Group and buy 20 per cent of Nasdaq, home to many top US high-tech companies.
President George W. Bush said the proposed deal would be examined under a newly strengthened law that reviews foreign investments in US companies.
In July, he signed legislation to strengthen the oversight of acquisitions of US companies by foreign firms.
The law came about after a wave of criticism last year when US officials approved the acquisition of some key US port operations by state-owned Dubai Ports World.
Congressional critics from both parties said not enough time was taken to consider the security implications.
The new law requires US regulators to spend more time vetting deals and keeps Congress better informed about the Committee on Foreign Investment in the United States, which reviews deals.