Qatar said to build $1bn stake in Bank of America

Qatar Holding reportedly building up stake in banking giant to benefit from US economic recovery

Qatar's sovereign wealth fund, one of the world's most prolific investors, is building a $1 billion holding in Bank of America, seeking to benefit from the US economic recovery, the Financial Times reported, citing sources close to the plans.

Qatar Holding, the investment arm of Qatar Investment Authority (QIA), began buying BofA shares about two years ago, the newspaper said on its website, citing a person close to the fund. The FT added that Qatar had bought more of the bank's shares when their price fell to $7-$8 last year.

BofA's stock closed at $14.17, up 2 cents, on the New York Stock Exchange. A $1 billion stake at this price represents less than 1 percent of BofA, which has a market capitalisation of about $151.2 billion, according to Thomson Reuters data.

Under newly appointed Chief Executive Ahmed Al-Sayed, QIA has been on an aggressive expansion spree, hiring bankers and senior executives with experience ranging from mergers and acquisitions in Asia to retail and luxury investments in Europe.

The FT said QIA had hired Michael Cho, a former co-head of Asia mergers and acquisitions at BofA, for a senior role in its mergers and acquisitions department.

Three sources had told Reuters in September that Qatar Holding had hired Ugo Arzani, most recently a BofA managing director in London, as its new head of consumer and retail investments.

The sources had also said that QIA, worth more than $100 billion, was scouting for opportunities in Asia and the United States in a bid to reduce its exposure to Europe and diversify its investment portfolio.

In recent years, QIA has picked up minority stakes in several large global companies such as Royal Dutch Shell, Tiffany & Co, Siemens, Glencore Xstrata and Swiss banking giant Credit Suisse .

BofA declined to comment and QIA could not be reached for comment outside working hours.

Related:
Companies
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

NOTE: Comments posted on arabianbusiness.com may be printed in the magazine Arabian Business

Please post responsibly. Commenter Rules

Posted by: khalid

they have also build a large stake in samsung

All comments are subject to approval before appearing

Further reading

Features & Analysis
A natural move: How Dubai Chamber is strengthening its ties in Latin America

A natural move: How Dubai Chamber is strengthening its ties in Latin America

With vast resources and more than half-a-billion people, the...

If Saudi future's so bright, why can't these banks find buyers?

If Saudi future's so bright, why can't these banks find buyers?

No big-name global banks eager to buy stakes in Saudi banks,...

GCC economies must live up to their potential to thrive: PwC chairman

GCC economies must live up to their potential to thrive: PwC chairman

No matter how much revenue VAT generates, it does not negate...

Most Discussed
sponsoredTracking