Alliance ask-price exceeds new limit

Shares of Oman's Alliance Housing Bank, which received a takeover bid from Bank Muscat, did not trade for a second day on Wednesday, after asking prices exceeded a widened daily trading limit.

The bourse raised the price-rise limit to 20% from 10% on Wednesday, bourse spokesman Ahmed al-Humeidi said, but asking prices still exceeded the maximum.

"We have raised the ceiling and still no one is willing to sell," Humeidi said. "People are asking for more than 20 per cent."

The bourse would review the limit on Thursday and possibly raise it again, Humeidi said, without saying what the new limit might be.

Shares of Alliance closed at 0.275 rials ($0.714) on Monday. The asking price at 0807 GMT was 0.331 rials.

Bank Muscat has offered 0.375 rials per share to acquire Alliance, according to a letter to the bourse.

Net income at Alliance declined 11.4% last year to 3.9 million rials, compared with 4.4 million rials in 2005 after Bank Muscat and other lenders were allowed to offer mortgages and competition grew.

Print | Email | Discuss this article

| Share |

READERS' COMMENTS

Click here to post a comment

Add your Comment All posts are sent to the administrator for review and are published only after approval. ArabianBusiness.com reserves the right to remove any comment at any time for any reason. Please keep your responses appropriate and on topic. Arabian Business would like to point out that only comments relevant to the story will be published. Any containing personal insults or inappropriate language will not be approved.
Name *
Remember me on this computer
Email *	(Your email address will not be published)
City
Country
Subject *
Comment *
Notify me of further comments
Enter the words above *
Please click post only once - your comment will not be published immediately.

MORE FROM ARABIANBUSINESS.COM