Abu Dhabi fund said any talks on a deal to buy part of stake owned by builder's former CEO would remain confidential
Shares in Dubai builder
Arabtec plunged in early trade on Sunday after Aabar Investments, one of its
major shareholders, did not confirm a report which said Aabar was in talks to
increase its stake.
Arabtec tumbled its daily 10 percent limit,
dragging down the entire Dubai stock market, where the main index dropped 4.68 percent at noon.
Arabtec jumped last week on speculation that Aabar
would raise its stake from the current 18.94 percent. The bourse suspended the
stock on Thursday after Bloomberg reported that Aabar was in talks to buy at
least part of the 28.85 percent stake owned by Arabtec's former chief executive
Hasan Ismaik, who abruptly resigned last month.
"As a partner committed to and supporting Arabtec, Abaar asserts that it is currently studying a number of strategic options regarding its investments in Arabtec," Aabar said.
But "any talks it may have with any party regarding these investments are highly confidential until a decision is made," it added, promising to notify the market as soon as it made a decision on its options.