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Thursday, 8 November 2012

Qatar Holdings Is Said to Invest $100 Million in Chernin Group -

The Chernin Group, a private media company founded by a former News Corporation president, Peter Chernin, on Thursday continued to expand its financial support, this time with an equity investment from Qatar Holdings, the group said.

The investment by the Qatar firm, a unit of the government-backed Qatar Investment Authority, means it will be one of the two largest backers of the Chernin Group, along with Providence Equity Partners. Providence invested about $200 million in the Chernin Group this year.

“They’re trying to give us more firepower,” said Mr. Chernin, who spoke by telephone on Thursday.

MENA stock markets close - November 8, 2012

 ExchangeStatus IndexChange  
 TASI (Saudi Stock Market)
 DFM (Dubai Financial Market)
 ADX (Abudhabi Securities Exchange)
 KSE (Kuwait Stock Exchange)
 BSE (Bahrain Stock Exchange)
 MSM (Muscat Securities Market)
 QE (Qatar Exchange)
 LSE (Beirut Stock Exchange)
 EGX 30 (Egypt Exchange)
 ASE (Amman Stock Exchange)
 TUNINDEX (Tunisia Stock Exchange)
 CB (Casablanca Stock Exchange)
 PSE (Palestine Securities Exchange)

UPDATE 1-OPEC admits significant impact of shale oil on supply - Yahoo! News Maktoob

OPEC acknowledged for the first time on Thursday that technology for extracting oil and gas from shale is changing the global supply picture significantly, and said demand for crude would rise more slowly than it had
previously expected.
In its annual World Oil Outlook, OPEC cut its forecast of global oil demand to 2016 due to economic weakness and also increased its forecast of supplies from countries outside the 12-nation exporters' group.
"Given recent significant increases in North American shale oil and shale gas production, it is now clear that these
resources might play an increasingly important role in non-OPEC medium- and long-term supply prospects," the Organization of the Petroleum Exporting Countries said in the report.

Senior execs leave top UniCredit shareholder Aabar - sources - Yahoo! News Maktoob

Abu Dhabi's Aabar Investments, the top shareholder in Italian bank UniCredit, has lost its chief financial officer and another top executive, sources familiar with the matter said.
The move signals the state-owned firm, which recently divested its stake in German carmaker Daimler, may be
scaling back an investment spree which has seen it take stakes in high-profile global companies since its inception in 2005.
Brandt Mowry, an executive with a dual role as both chief financial officer and chief investment officer, left Aabar in October, three sources said, speaking anonymously because the matter has not been made public.
General Counsel Alex Iapichino also left the company in September, one of the sources said. Another executive from the legal department left as well, the sources said, without providing her name.

Aldar, Sorouh Drop on Bets Merger to Disappoint: Abu Dhabi Mover - Businessweek

Aldar Properties PJSC (ALDAR) and Sorouh Real Estate Co. (SOROUH) dropped in Abu Dhabi on concern the terms of a possible merger between Abu Dhabi’s biggest property companies may dilute their shareholdings.

Aldar, the emirate’s largest developer, declined 2.3 percent, the most since Sept. 18, to close at 1.29 dirhams. The stock tumbled 5.2 percent this week. Sorouh also fell 2.3 percent, the most since June 12, to 1.29 dirhams, bringing the drop for the past five days to 3 percent. Discussions on a merger are at an “advanced stage,” the companies said yesterday, without elaborating.

The two real-estate companies, which have played an integral part in Abu Dhabi’s drive to turn itself into a tourism and business hub, said in March they are studying a merger with the “blessing” of the emirate’s government. Investors are concerned the transaction’s terms could dilute their shareholding, said Nabil Al Rantisi, managing director of brokerage at Abu Dhabi-based Menacorp.

Distressed debt in the Gulf – only for the risk-hungry | beyondbrics

Distressed debt players who took a bet on bonds issued by Blue City of Oman should be cheered by a chance to get out.

The Gulf country’s sovereign wealth fund has offered to buy “class B” subordinated notes of the ailing real estate project – a $20bn beachside development that stalled as the financial crisis took a grip.

At 35 cents on the dollar, the offer from a unit of the Oman Investment Fund gives investors a rare opportunity to walk away with cash as the oil-rich government steps in to clean up the mess.

STOCKS NEWS MIDEAST-Dubai up from 5-wk low; Abu Dhabi developers dip - Yahoo! News Maktoob

Dubai's measure rebounds from Wednesday's five-week low as bargain hunters return, while Abu Dhabi's top two property developers fall on investor disappointment over the slow progress of their merger talks.
Dubai bellwether Emaar Properties rises 2.2 percent to 3.66 dirhams, accounting for a one-sixth of trading
volumes as it reverses losses that took the stock to a five-week low in early trade.
"Emaar touched 3.55 dirhams, which attracted buyers," says Chahir Hosni, head of Gulf institutional sales at EFG Hermes. "We're mostly through the correction (in Dubai) and I'm positive from here until year-end. Next week, we'll be looking at global markets after the U.S. elections - the U.S. market is expected to rebound looking at futures trading and it will have an impact in the Gulf next week."
Dubai's index rises 0.8 percent to finish at 1,617 points.

Bahrain Batelco sues Indian ex-partner for $185 mln | Reuters

Bahrain Telecommunications Co BTEL.BH (Batelco) is suing ex-partner Siva Ltd for $185 million, claiming the Indian firm has failed to adhere to a settlement agreement over their joint venture S Tel, the former monopoly said in a statement.

S Tel was one of eight Indian mobile operators ordered to be stripped of licences in February as part of a corruption probe.

Later that month, Batelco announced it had agreed to sell its 43 percent stake in S Tel back to Sky City Foundation Ltd for $175 million, receiving the price paid to acquire its S Tel holding in 2009.

Abu Dhabi's ADIB to price sukuk Thursday, guidance revised | Reuters

Abu Dhabi Islamic Bank, the largest sharia-compliant lender in the emirate, is set to raise at least $500 million from a sukuk offering to boost its core capital, following massive investor interest for the debut deal.

On Wednesday, ADIB revised profit rate guidance on the Tier 1 perpetual Islamic bond, the first from the region, to 6.5 percent, with room to tighten or widen slightly, after receiving more than $11 billion in orders, according to arranging banks.

Early price talk on the hybrid sukuk had been released at 7 percent. Strong demand for the deal could convince the issuer to raise more than just $500 million.

STOCKS NEWS MIDEAST-Dana Gas falls after restructuring $920 mln sukuk - Yahoo! News Maktoob

Shares in Dana Gas, the first UAE entity to default on an Islamic bond, fall after the firm said on Wednesday it restructured its $920 million sukuk.
Dana Gas falls 4.7 percent, down 2.4 percent so far in November.
It will pay its sukuk holders a mix of cash and new bonds - split between an ordinary sukuk and a convertible one.
Analysts are concerned a new convertible increases the risk of dilution for shareholders and the ordinary sukuk increases the risk of Dana adding further assets - such as those in Kurdistan - as security..
Abu Dhabi's index slips 0.2 percent to 1,594 points.

Emirates may buy 100 Boeing 777s jets if new model built-report - Yahoo! News Maktoob

Emirates airline would order 100 or more Boeing 777 wide-body jets if the manufacturer upgraded the design of the aircraft, the Dubai-based carrier's president said in a report.
"If Boeing produced the airplane that we want I can see easily that figure, bearing in mind that we've ordered 175 of them," Tim Clark said in an interview with Arabian Business magazine and published on its website.
"If it's as good as we hope it'll be, it's a natural thing to say 'yes we would probably roll over what we have to what they're offering with the new aircraft'."

Dubai debt hangover to peak by end of year - The National

The amount of cash that UAE banks must set aside for bad debts is expected to peak this year before beginning to decline next year, according to Moody's, the international ratings agency.

That said, Moody's added, the bad debts left over from Dubai World's US$25 billion (Dh91.83bn) debt restructuring are still weighing on the nation's financial system.

"We expect profitability to remain constrained by cautious loan growth and the ongoing provisioning that is required to cover elevated problem loan levels, against a background of mixed signs of a recovery and our expectation that the performance of UAE banks' net earnings will remain uneven over the coming 12-18 months," Moody's said in a report.

Dubai facing $48bn debt challenge, says StanChart

Dubai faces $48bn of debt maturities between 2014 and 2016 but, unlike the crisis in 2009, is better equipped to handle redemptions due to an economic rebound, Standard Chartered said in a research report yesterday.
In the note, the UK-based lender said Dubai, propelled into the global limelight three years ago after asking for a $25bn debt restructuring for one of its flagship investment vehicles, has made little progress on raising cash from asset sales and the emirate’s overall debt burden remains a challenge.
The report added that sovereign debt has ballooned in a very short space of time, as the government borrows to support its entities and invest in infrastructure projects, with government debt accounting for about 30 percent of Dubai’s total debt.