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Tuesday, 11 October 2011

Qatar Bets on Hobbled European Banks Dexia and KBC Group -

Qatari investors are on the hunt for deals across Europe after agreeing to buy the private bank operations of the troubled European firms Dexia and KBC Group.

The deals mirror similar moves in 2008, when banking heavyweights like Barclays and UBS turned to Mideast sovereign wealth funds for huge infusions of cash to recapitalize their operations after Lehman Brothers collapsed.

On Monday, Precision Capital, a Qatari-backed firm based in Luxembourg, agreed to buy KBL European Private Bankers for $1.4 billion. The figure is $400 million less than a previous offer from the Hinduja Group of India, which fell through in March for regulatory reasons.