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Sat 25 Jul 2009 09:58 AM

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Kuwait's KAMCO denies gaining from Harman trade

Kuwaiti fund manager KAMCO reacts to investigations initiated by US regulators.

Kuwaiti fund manager KAMCO said on Friday it had made no gain from trades in shares of Harman International Industries and Textron investigated by US regulators."The transactions mentioned in (the) SEC litigation release were undertaken by KAMCO under specific instructions of its client in normal course of business," KIPCO Asset Management Co (KAMCO) said in a statement.

"KAMCO had or has no proprietary investment or any interest in the related shares and thus has not benefited and has not gained from the reported trades," it said, adding that it had complied with regulations.

On Thursday, the US Securities and Exchange Commission sued Kuwaiti financier Hazem Khalid Al-Braikan and entities linked to him including KAMCO saying they earned millions from trades in Harman and Textron after "fraudulent" takeover reports sent shares of the two US firms soaring.

Al-Braikan is chief executive of Al Raya Investment Company, which is 10 percent owned by Citigroup.

Other defendants in the SEC suit include Bahrain-based investment bank United Gulf Bank and KIPCO Asset Management Co (KAMCO). Both are part of the Kuwait Projects Co (KIPCO) group.

KIPCO is affiliated with senior members of Kuwait's ruling Al Sabah family. It is the biggest investment firm by assets in Kuwait. (Reuters)

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