QATAR is to become the biggest shareholder in the London Stock Exchange after offering £2.8 billion for the 31% stake owned by Nasdaq, the New York technology bourse.

The Qatar Investment Authority (QIA) made the offer, equivalent to £14 a share, late on Thursday. The Nasdaq board met to discuss the proposal yesterday.

Insiders said chief executive Bob Greifeld was keen to accept the Qatari cash to fund his planned knock-out bid for OMX, the Scandinavian exchange group. If Nasdaq does accept, which most insiders expect it will, the Qatar government, which runs the QIA, will become a major power-broker in determining the future of the London exchange.

In May, Nasdaq agreed to buy OMX for $3.7 billion (£1.8 billion) in cash and shares. Sources close to the situation said Greifeld wanted to make a revised offer as soon as possible to capitalise on the time-advantage Nasdaq has over Borse Dubai, its rival in the race for OMX.

The cash generated by £14-per-share would allow Nasdaq to raise its bid for OMX from 212 Swedish kroner per share to as much as 260 kroner.

Borse Dubai, the owner of Dubai’s two stock exchanges, made a $4 billion – or 230 kroner per share – cash offer for OMX. Dubai, which is being advised by HSBC, has privately told investors that whatever price Nasdaq offers, it will pay 10% more.

A source said: “Nasdaq knows Dubai can outgun it in terms of cash. But with the sale of the LSE stake, it can offer shareholders a very high price, plus the potential upside in shares. But the big advantage is they can have it here and now, while Dubai is tied up with regulators.”

Last month, as revealed by The Sunday Times, the Qataris indicated they would be willing to pay £15 a share for Nasdaq’s stake in the LSE. At the time, Temasek, the investment group backed by the Sin-gapore government, was also considering buying Nasdaq’s stake in the LSE. In addition, Deutsche Börse, the German exchange, was also expressing interest.

But last week Temasek, Deutsche Börse and a collection of Italian institutions walked away from the sale process, which is being run by bankers at UBS. The Qataris then felt safe to lower their initial indication to £14 per share.

Nasdaq’s departure from the LSE’s share register ends a bitter 18-month battle by Greifeld to win over the LSE and its its chief executive Clara Furse.

OMX shares closed at 245 kroner.

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