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Sunday, 9 October 2011

Analysis: Qatar unlikely to be white knight for Europe banks | Reuters

Hopes may be disappointed for an influx of money from Qatar and other rich Gulf states into battered European banks, since Gulf investors are likely to see many of the banks as too risky and out of line with their investment strategies.

As Europe's banking system has weakened over the last several months, financial markets have been abuzz with rumors and media reports about possible investments from the Gulf -- particularly from cash-rich Qatar, which has been on an international acquisitions spree.

In June, Spanish bank Santander (SAN.MC) denied a report that it was in talks on Qatar buying a stake in it. Last month, France's BNP Paribas (BNPP.PA) denied a similar report. The latest speculation centers on assets of financial group Dexia (DEXI.BR); the prime ministers of France and Belgium were meeting on Sunday to discuss breaking up the group.