Bahrain bourse halts Global's sale of Salam stake

Dispute was over selling a stake in Salam Bank to an unidentified investor, Global says in a statement.
Bahrain bourse halts Global's sale of Salam stake
NO COMMENT:GIH is Kuwaits largest investment bank.
By Dania Saadi, Rania El Gamal and Frederik Richter
Thu 11 Jun 2009 05:17 PM

Bahrain's Stock Exchange halted Kuwait-based Global Investment House's sale of a 14 percent stake in Bahrain's Salam Bank due to a dispute with an investor."As about 162,000,000 shares from Salam Bank's shares owned by Global Investment House are currently a matter of a legal dispute with an investor at Bahrain's courts, it has been decreed according to article 1 to halt the sale process," the exchange said in a statement on Thursday.

The dispute was over selling a stake in Salam Bank to an unidentified investor, Global said later in a statement.

"The decision by the Bahrain Stock Exchange was made due to a claim by one of the parties, which showed an initial interest to buy the shares earlier, that it has the right to buy those shares," Global said in the statement. "But this claim has no real or legal basis," it added.

Salam Bank could not immediately comment on the report.

The exchange said Global's sale of 169,500,973 shares in Salam Bank, equivalent to 14.05 percent, at 140 Bahraini fils per share was supposed to take place on Thursday.

Global, Kuwait's largest investment bank, said on June 1 it planned to sell its stake in Salam Bank by June 9 and book profits in the second quarter as it offloads assets following a debt default earlier in the year.

Global is among the most prominent financial firms in the Gulf Arab region to face serious problems as credit conditions tightened during the financial crisis. (Reuters)

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