Thursday 19 May 2011

Emaar profit seen hit by Dubai Bank write-off | Reuters

Emaar Properties (EMAR.DU) said it will write off its investment in Dubai Bank, valued at about 172 million dirhams ($46.8 million), a move expected to further erode the company's profits in the short-term, analysts said.

The decision comes after the Dubai government announced on Monday that it would take over the troubled Islamic lender, thereby completely diluting the holdings of Dubai Bank's current shareholders.

"We view this clean-up act as positive although pressuring the second-quarter bottom line and share price performance in the near term," said a note from CAPM Investment.

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