Wednesday, 21 January 2009

Shuaa bond dispute vote postponed

A shareholder meeting to try end the dispute over a convertible bond between Shuaa Capital and Dubai Banking Group on Tuesday was postponed after too few voting members turned up.

The extraordinary meeting was to vote on a compromise that would allow DBG to delay the conversion of a convertible bond originally due last October. But with less than 50 per cent of shareholders or proxy votes present, the meeting must be re-convened within 30 days.

Analysts are worried about Shuaa’s financial risk profile if the bond does not get converted, which would make it appear as debt on the bank´s books rather than equity.

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