Kuwait investment firm disputes Boubyan stake sale

Dar has filed a lawsuit against Commercial Bank of Kuwait over Islamic lender stake.
Kuwait investment firm disputes Boubyan stake sale
BANK STAKE: Kuwaits Dar is disputing the sale of a stake in Islamic lender Boubyan Bank. (Getty Images - for illustrative purposes only)
By Elsa Baxter
Mon 15 Jun 2009 10:28 AM

Kuwait's Islamic firm Investment Dar said it has filed a lawsuit against Commercial Bank of Kuwait (CBK) disputing the sale of a stake in Boubyan Bank.

Dar's statement came after National Bank of Kuwait (NBK) said on Sunday it had agreed with Commercial Bank of Kuwait (CBK) to buy its stake in Islamic lender Boubyan Bank for about KD120m ($420m).

"Investment Dar warns the National Bank of Kuwait, or any other party, against attempting to get involved in this dispute so as not to subject its reputation and the interests of its clients and shareholders to risk," Dar said in a statement late on Sunday.

CBK was not immediately available for comment.

Dar said in the statement one of the three lawsuits it has filed with the Kuwaiti judiciary against CBK is to stop CBK from selling Boubyan shares. The hearing for the lawsuit is set for Monday, it added.

It also filed another lawsuit demanding that CBK return the shares to Investment Dar.

Last month Investment Dar filed a complaint against CBK in a dispute over the stake in Boubyan. The complaint came after CBK said Investment Dar and related firms had lost their right to buy back a 19.2 percent stake in Boubyan under a 2008 agreement.

It was not immediately clear if the deal between NBK and CBK could be affected by the dispute.

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