MIDEAST STOCKS-Abu Dhabi banks rocket on merger talks; Gulf mostly up | Reuters

MIDEAST STOCKS-Abu Dhabi banks rocket on merger talks; Gulf mostly up | Reuters:

"Shares in Abu Dhabi banks soared early on Sunday on news that National Bank of Abu Dhabi (NBAD) and First Gulf Bank (FGB) were in merger talks, while most other stock markets in the Gulf were firm.

NBAD and FGB confirmed in a brief statement on Sunday that they were discussing a merger or combination of their businesses, in what would create the largest bank by assets in the Middle East and Africa.

Many analysts said it was too early to take positions in the stocks before details were known. Some said a merger could benefit shareholders of both banks - Arqaam Capital said FGB would benefit from a stronger wholesale banking operation while NBAD was underepresented in retail banking - but HSBC predicted a pure merger would benefit only NBAD, while a merger through acquisition would destroy shareholder value at both banks."



'via Blog this'