Cairo bank merger talks fall through

Commercial International Bank and Arab African International Bank terminate talks.
Cairo bank merger talks fall through
By Jonathan Wright
Wed 14 May 2008 03:45 PM

Egypt's Commercial International Bank (CIB) said in a statement on Wednesday that its talks with Arab African International Bank (AAIB) on a possible merger had terminated.The talks failed to reach an agreement, Ashraf Shash, director of strategic planning at CIB, told newswire Reuters.

CIB and AAIB, which is owned mainly by the Central Bank of Egypt and the Kuwait Investment Authority (KIA), announced in October last year that they had agreed to conduct exclusive due-diligence studies which could lead to a merger.

But CIB Chairman Hisham Ezz Al-Arab said in November that his bank would not rush into a merger.

Shash said: "It looked very unlikely that we could reach an agreement with AAIB shareholders on mutually acceptable terms." He declined to elaborate. (Reuters)

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