Wednesday, 18 May 2011

gulfnews : Dubai Bank appears better positioned for merger

The acquisition of 100 per cent shares in Dubai Bank by the Government of Dubai on Monday makes it a more acceptable candidate for merger, according to bankers and analysts.

"After recapitalisation and non-performing loan (NPL) cleansing, we see increased chance that Emirates NBD could acquire both Amlak, [an Islamic mortgage provider] and Dubai Bank on commercial terms," said Jaap Meijer, head of the bank team at AlembicHC.

Analysts said in the context of Investment Corporation of Dubai holding a 55.6 per cent stake in Emirates NBD, a consolidation of Dubai Bank with the group looks more likely.

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