Finance

LSE acquisition talk getting heated again

Following a stock price slide that has more than halved its value this year, the London Stock Exchange PLC is again the subject of takeover interest, with its two largest shareholders in Dubai and Qatar being cited as potential suitors.

“There is talk that Dubai Borse, most likely with Nasdaq OMX, will go after the LSE. I don't think Dubai could do it alone,'' said a US exchange source, who asked not to be named. Borse Dubai Ltd., Dubai, UAE, owns 20.3 percent of the LSE, and sovereign fund Qatar Investment Authority, Doha, owns 15.1 percent.

Qatari Diar announces exclusive bid for France's Cegelec

Qatari Diar, the real estate investment company, announced that it was finalising an exclusive bid for French engineering and electrical engineering group Cegelec. Qatari Diar is owned by the Qatar Investment Authority (QIA), which is the sovereign wealth fund of the small gas-rich Gulf state.

Dubai's ETA Star wants US$400m for Asia

Dubai's ETA Star Property Developers plans to raise US$400 million through a fund and Islamic bonds for a drive into Asian markets as diverse as India and Laos, but rising costs are deterring the firm in Turkey and Egypt.

The company, part of privately held ETA-Ascon Group, is looking to supplement its own funds to develop 120 million sq ft of land in India, and enter other markets in Asia. It has also just snapped up land in Vietnam and Malaysia.

Gulf Finance increases placement to US$1bn

Buoyed by investor demand, the Bahrain-based regional Islamic investment banking major, Gulf Finance House, has increased the initial private placement offering for its First Energy Bank to US$1 billion from the originally planned US$750 million.

The first Sharia-compliant bank focused on the investment, financing and service needs of the energy sector was announced in February by Gulf Finance House, a specialist in energy infrastructure cities, after it obtained the 'in principal' approval from the Central Bank of Bahrain.

OMX Group introduces the NASDAQ OMX Middle East North Africa Index

The NASDAQ OMX Group, Inc. announced the introduction of the NASDAQ OMX Middle East North Africa Index(sm), a new global benchmark for NASDAQ OMX. The NASDAQ OMX Middle East North Africa Index is a float-adjusted market-capitalisation weighted index comprised of the largest and most liquid companies domiciled in Middle Eastern and North African (MENA) countries.

Franklin launches Middle East, North Africa fund

Franklin Resources Inc said it was launching a new fund investing in the Middle East and North Africa, joining a growing number of money managers offering products geared to the energy rich region.

The Franklin MENA Fund will invest in markets including Saudi Arabia, United Arab Emirates, Kuwait, Qatar, Bahrain, Oman, Egypt, Jordan and Morocco. The fund is not expected to allocate more than 40 percent of assets to a single country in the region.

How sovereign wealth funds are underpinning Gulf states' credit quality

The three-year run of high oil prices doesn't look like it will abate any time soon, with continuing strong demand and supply disruptions driving oil prices to a new high of around US$135 per barrel in May. This is good news for the GCC countries, which have run large current account surpluses since 2002. The accumulated wealth from these surpluses is the key reason behind these sovereigns' strong fiscal and external positions.

Kuwait's Global says unit seeks US$500m in IPO

Kuwait's Global Investment House said an investment unit planned to raise up to US$500 million by selling shares in an initial public offering to tap economic growth in the Middle East region.

Global MENA Financial Assets Ltd is seeking to list the shares on the London Stock Exchange on or around July 18, Global said. Shares would be sold to ""institutional and professional"" investors including Gulf markets, it said.

CBB to launch new breed of sukuk

In a breakthrough that could give greater flexibility to the growing sukuk market, the Central Bank of Bahrain (CBB) is launching a key Islamic financial instrument aimed at providing a much-needed liquidity-management tool for Islamic financial institutions.

The Islamic sukuk liquidity instrument, jointly developed by the Kingdom’s apex bank and Bahrain-based Liquidity Management Centre which is providing asset-sourcing, structuring and market-making capabilities, is to be launched in the market late in June.

Kuwait's KFH to expand in Turkey, Gulf

Kuwait Finance House (KFH) aims to become one of the top banking players in Turkey and is considering expansion in Hong Kong and Australia to tap booming demand for services compliant with Islamic law.

Qatar wealth fund eyes Barclays stake

Qatar's sovereign wealth fund is considering backing a share issue by British bank Barclays, which could raise more than £4 billion (US$7.81 billion) from investors. The Qatar Investment Authority (QIA), which has said it bought under 2 percent of Credit Suisse this year, could help Barclays rebuild its capital reserves without a rights issue.

Kuwait's KIA in talks to invest in Syria

Kuwait's sovereign wealth fund, the Kuwait Investment Authority (KIA), is considering investing in Syria. KIA officials are holding talks in Syria to discuss "prospects for joint investment cooperation", said the KIA's Khaled al-Hassoun, leader of the talks.