Bank Muscat's bid for Alliance 'no longer valid'

Bank Muscat said on Thursday its bid for mortgage lender Alliance Housing Bank was no longer valid.

"Bank Muscat has informed Alliance Housing Bank and the Capital Market Authority that the offer of merger it had made to Alliance Housing Bank is no longer valid as of 13th June 2007," Bank Muscat said in a statement on the stock exchange Web site.

Shares in Bank Muscat closed down 1.09% after the news while Alliance rose 1.86%.

Last month Bank Muscat met Alliance shareholders to drum up support for its 375 baisas ($0.974) per share offer after the board of Oman's biggest mortgage lender rejected the bid.

Alliance said on Monday it had asked Egyptian investment bank EFG-Hermes to study takeover offers , including Bank Muscat's hostile bid.

Alliance's biggest shareholder, Oman National Investment Corp. Holding, said last month it was looking for a higher price after Bank Muscat made its offer.

Bank Muscat's offer was 36% above Alliance's share price before the bid was announced on May 9. Alliance shares have since rallied more than 30%.

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