Kuwait's CBK yet to agree BBK sale

Commercial Bank of Kuwait contradicts local media report that CBK and Pearl to sell stakes in Bahraini lender.
Kuwait's CBK yet to agree BBK sale
By Ulf Laessing
Sun 30 Sep 2007 07:52 PM

Commercial Bank of Kuwait (CBK) has not agreed to sell its stake in Bahrain-based lender BBK, said a CBK official, contradicting a report in Kuwait's Al-Watan newspaper.

Shares of BBK, of which CBK is the biggest shareholder, closed up 4.1% in Bahrain on Sunday, their biggest one-day jump in six months.

Al-Watan said on Sunday that CBK and Pearl of Kuwait Real Estate had agreed to sell their stakes in the Bahraini lender at 530 fils per share to an unidentified Kuwaiti investor, though a contract had yet to be signed.

"It's not correct... we have not reached a deal," said the official, who did not want to be identified.

CBK holds 20.17% of BBK, according to the Kuwaiti bourse website. The bourse, which only lists holdings for 5% or more, does not list any Pearl holding.

Two Bahraini state pension funds are BBK's other biggest shareholders, owning 32.18% between them.

Shares of CBK closed unchanged on Sunday. Pearl rose 0.93%. - Reuters

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