The Qatar Investment Authority (QIA) dramatically upped the pace of stock exchange mergers today as it snapped up 20 per cent of the London Stock Exchange and went into the market for a 10 per cent stake in Scandinavian exchange group OMX.

QIA paid Skr260 per share for its stake in OMX, a hefty premium to the Skr212 paid by Nasdq and Dubai's Skr230.

It raises the serious prospect that the Emirate authority is prepaing a counter-bid for the OMX bourse.

It took the wind out of the a landmark tie-up between Nasdaq and Borse Dubai, involving the sale to the Middle East bourse of the Americans' £800 million, 30 per cent stake in the LSE.

The Qataris would be in a position to bid for either the LSE or OMX. Alternatively, the Emirate could opt to be an active player in both markets and help dictate the ownership of the London market.

The LSE, led by chief executive Clara Furse, made no comment on the sale of the Nasdaq stake, although it welcomed having QIA as a substantial holder.

"The board of the Exchange is very happy to welcome the QIA as a long-term investor in the company,” the LSE said.

LSE shares jumped 135p to £15.88.

Last night the Qataris agreed to pay £633 million, or £15.85 per share, to American investors Paulson and Samuel Heyman, who both owned a 10 per cent stake in the LSE. The deal was signed this morning.

QIA decided to move yesterday in an effort to ensure it was not squeezed out of the rapidly moving exchange consolidation.

This morning, Dubai and Nasdaq, previously rivals to buy OMX, the Scandinavian exchange group, announced that they were teaming up.

Under the terms of the deal, Borse Dubai bought a 20 per cent stake in Nasdaq as well as Nasdaq's 30 per cent stake in the LSE for £848 million or £14.14 per share.

Borse Dubai will bid for OMX and then rebrand as Nasdaq.

Meanwhile, the Qataris have announced that they will not launch a bid to buy the whole of the LSE. Insiders said they are reviewing their options over whether to launch a rival bid for OMX.

The events of the past 24 hours leave each of the players in radically different positions. Last week, the Qataris made a £2.8 billion, or £14 per share, bid for Nasdaq's stake in the LSE.

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