ArabianBusiness.com - Middle East Business News
Thursday, 08 January 2009 06:09 UAE time

YOUR DIRECTORY /

Print this page Print this page | Email this to a friend Email this to a friend | Discuss this article (0 Comments) |

Gulf Bank not seeking merger

by This email address is being protected from spam bots, you need Javascript enabled to view it  on Sunday, 23 November 2008
MERGER TALK: Al-Ghanim said Gulf Bank was not looking for a merger for the time being. (Getty Images)

Kuwait's Gulf Bank is not seeking a merger for the time being as major shareholders support the troubled bank and its emergency rights issue, its chairman said in remarks published on Sunday.

The lender is seeking to raise 375 million dinars ($1.37 billion) after the Gulf Arab state had to save its fifth-largest lender by market value following losses with derivatives worth the same amount, triggering a departure of its board.

Gulf Bank's new chairman Kutayba Al-Ghanim told Al-Rai daily that merging with another bank was not a priority until a restructuring ordered by the central bank was over.

Story continues below
advertisement

"The issue does currently not present itself. I don't think it will become an issue to look into as long as we're working on a revamp," he told the paper when asked whether Gulf Bank had got any offers by other lenders to merge.

Kuwaiti investment firm Noor Financial Investment Co. said last week it represented two foreign institutions mulling to buy up to 51 percent of Gulf Bank. It did not identify the suitors.

But Al-Ghanim, who said in October the bank was considering a merger, said a stake sale would not make much sense given the low valuations expected in the wake of the global financial crisis.

"We focus on the bank's operational business and a sale is an issue we don't currently don't think about," he said.

Al-Ghanim said he expected a high subscription rate for the emergency capital increase as major shareholders were backing the bank which is only active in Kuwait.

"Of course, we are optimistic," he said.

He added the bank, which holds an extraordinary shareholder meeting on Dec. 2, expects to get proceeds from the emergency rights issue by year-end. (Reuters)

Print Print | Email Email | Discuss this article |


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.
Name *
Remember me on this computer
Email *
(Your email address will not be published)
City
Country
Subject *
Comment *
Notify me of further comments
Security Code * Code


Please click post only once - your comment will not be published immediately.


MORE FROM ARABIANBUSINESS.COM

RELATED LINKS

  1. Gulf Bank»

 EMAIL ALERTS

  1. Gulf Bank

  2. Financial Markets



Rich List 2008
EMIRATES ID DOWNLOAD

READER COMMENTS

  1. Abu Dhabi bank chief quits for investment role 1
    07 Jan ' 09 at 13:04
    DuringH>E tenor, the staff of NBAD had an opportunity to grow and obviously financial status itself proves his success. We thank you...  More »
  2. Reasons to be cheerful 1
    07 Jan ' 09 at 14:38
    Undoubtedly, Gulf conomies stand a better chance to overcome credit crisis. However, every economy in Gulf has its own inherent...  More »
  3. A list full of dollars 1
    07 Jan ' 09 at 17:35
    look at the lower and labourers working under you.all I can say one can spread happiness by keeping good care for the people who are...  More »
Read all user comments >

BUSINESS FEATURES

Reasons to be cheerful

Arabian Business examines why the Mideast should be well on the path to recovery by end of 2009.

Antwerp finds diamonds aren’t forever amid crisis and tax probe

For Antwerp, the world's biggest gem trading hub, diamonds may not be its best friend after all.

Cooling down overheated economies

The GCC must move to an economic model that emphasises sustainable development.

BUSINESS INTERVIEWS

JP Morgan seeks growth in KSA market

Ghassan Abdul Karim explains why the kingdom is a crucial part of the company jigsaw in the Gulf.

MORE FROM ARABIANBUSINESS.COM