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Bahrain-based Gulf Finance House (GFH) has said it is studying options to merge its affiliate, Khaleeji Commercial Bank (KCB), with other Bahraini banks.
GFH, which has undergone a number of debt restructurings since 2009, currently owns 47 percent of KCB, which would be worth around BD23.3m ($61.8m) at current market value.
"GFH is currently studying a number of options to merge Khaleeji Commercial Bank with other banks in Bahrain to create a bigger and stronger bank," GFH said in a bourse filing in Dubai, where it is also listed.
It did not say which Bahraini banks it was considering as merger partners.
Gulf bank mergers are uncommon because main shareholders, often powerful local families, are reluctant to cede control and can demand exaggerated valuations.
However, Bahrain has seen some merger attempts in recent months as lenders react to the global financial crisis and the end of the real estate boom in the kingdom where many small banks are reliant on fees earned from managing property and land investments.
Earlier this month, Capivest, Elaf Bank and Capital Management House completed their three-way merging, creating a bank with total assets worth over $400m.
Bahrain Islamic Bank and Al Salam Bank said in February 2012 that merger talks between the two to form Bahrain's biggest Islamic bank by assets had collapsed because of disagreement on pricing.
In December, GFH Capital, a unit of GFH, bought English soccer club Leeds United.
Sooner or later each expat will have to pack and go back home; the UAE is not the surrogate mother of any foreigner, the UAE takes care of its own populace... more
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Thursday, 23 May 2013 4:43 PM - Maulana Abdul FazlDubai wants to be remembered in the west for its modernity, its beauty and opulence but who from the west will be able to forget those making $1.00 a day... more
Thursday, 23 May 2013 12:29 PM - Alan R. RennerAs much as I love the UAE, this will be a problem for them in the future. Lets look at this from any democratic Country on Earth. If I decided not to turn... more
Wednesday, 22 May 2013 11:56 AM - Ty SaySooner or later each expat will have to pack and go back home; the UAE is not the surrogate mother of any foreigner, the UAE takes care of its own populace... more
Friday, 24 May 2013 2:01 AM - SaeedLet me put the entire issue in perspective. There are massive traffic problems on the roads of Kuwait, where Kuwait can boast high road fatalities and... more
Tuesday, 21 May 2013 1:28 PM - Abdullah
Top managment greed is one of the main reasons that caused the 2008 crises. hope i delivered the message..
more
As much as I love the UAE, this will be a problem for them in the future. Lets look at this from any democratic Country on Earth. If I decided not to turn... more
Wednesday, 22 May 2013 11:56 AM - Ty SaySooner or later each expat will have to pack and go back home; the UAE is not the surrogate mother of any foreigner, the UAE takes care of its own populace... more
Friday, 24 May 2013 2:01 AM - Saeed
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