Shuaa and Dubai Banking Group dispute rages

The gloves are off in a dispute between Shuaa Capital and Dubai Banking Group (DBG) - a unit of Dubai Holding - over a Dh1.5 billion convertible bond issued to Shuaa by DBG in 2007.

The bond was meant to be converted into 250 million shares on maturity, but the two companies have been quarrelling over whether the conversion into shares is mandatory or not.

Shuaa contends that it is and yesterday asked the Dubai Financial Market to register 250 million shares, which would make DBG a 32 per cent shareholder.