Covestro Rejects $12 Billion Takeover Proposal From #AbuDhabi's Adnoc - Bloomberg

Covestro Rejects $12 Billion Takeover Proposal From Abu Dhabi's Adnoc - Bloomberg

Sultan Ahmed Al Jaber

Photographer: Aaron M. Sprecher/Bloomberg

Covestro AG has rejected an initial takeover proposal from Abu Dhabi National Oil Co. as too low, people familiar with the matter said.

The German plastics firm told Adnoc Chief Executive Officer Sultan Al Jaber in a letter Thursday that the proposed valuation doesn’t provide ground for further talks, according to the people, who asked not to be identified discussing confidential information. It also raised the question of whether Adnoc would be the best owner for some of Covestro’s assets, they said.

Covestro could be open to discussing a deal if it were offered better terms, the people said. In a recent meeting with Covestro leadership, Al Jaber had proposed a potential bid in the mid-€50s per share, which would value the company at nearly €11 billion ($12 billion), people with knowledge of the matter have said.

A bid of roughly €55 per share would be almost 40% above Covestro’s recent trading price, in line with the premiums typically offered for listed German companies. Still, refusing a first offer isn’t unusual. Some research analysts have given the company a target price as high as €64, data compiled by Bloomberg show.

Major Gulf bourses drop on falling oil prices | Reuters

Major Gulf bourses drop on falling oil prices | Reuters

Major stock markets in the Gulf ended lower on Thursday as investors remained cautious amid falling oil prices and U.S. Federal Reserve Chair Jerome Powell's hawkish tone on rates.

Crude oil prices - a key catalyst for the Gulf's financial markets - dropped on Thursday with Brent crude down 2.4% at $75.21 a barrel at 1314 GMT.

In Qatar, the benchmark index (.QSI) slumped 1.3%, extending losses to a third straight session with most sectors in the red.

The index was dragged down by a 5% decline in Qatar Aluminum Manufacturing Company (QAMC.QA) and 2.4% drop in Estithmar Holding (IGRD.QA) .

Among the losers, the region's largest lender Qatar National Bank (QNBK.QA) and Masraf Al Rayan (MARK.QA) lost 2.5% and 1.3% respectively.

Dubai's benchmark index (.DFMGI) eased 0.2%, weighed down by a 3.5% decline in Mashreqbank (MASB.DU) and a 2% drop in low- cost flyer Air Arabia (AIRA.DU).

The emirate's largest lender Emirates NBD (ENBD.DU) lost 0.7%.

Saudi Arabia's benchmark index (.TASI) fell 0.1%, with Alinma Bank (1150.SE) dropping 1.5% and Almarai Co (2280.SE) sliding 2.3%.

Elsewhere, First Milling Co (2283.SE), which rose as much as 30%, closed 17.5% higher in debut trade.

In Abu Dhabi, the index (.FTFADGI) continued its gains for a fifth consecutive session, ending 0.4% higher.

The conglomerate International Holding (IHC.AD) rose 0.5% and its subsidiary Alpha Dhabi Holding (ALPHADHABI.AD) jumped 10.5%, the sharpest intraday rise since November.

However, the United Arab Emirates' biggest lender, First Abu Dhabi Bank (FAB.AD) dropped 1.5%.

Fed chair Powell in his remarks to lawmakers in Washington said the outlook for two further 25-basis-point (bps) rate increases are "a pretty good guess" of where the central bank is heading if the economy continues in its current direction.

Most Gulf currencies are pegged to the dollar and any monetary policy change in the United States is usually mimicked by Saudi Arabia, the United Arab Emirates and Qatar.

Outside the Gulf, Egypt's blue-chip index (.EGX30) snapped a three-session losing streak and rose marginally with Sidi Kerir Petrochemicals gaining 1.7% and Qalaa Holdings (CCAP.CA) surging 7.2%.

However, Commercial International Bank (COMI.CA) and E-Finance(EFIH.CA) lost 0.6% and 1.5% respectively.

Separately, the Central Bank of Egypt (CBE) is expected to leave its overnight interest rates unchanged on Thursday.

#AbuDhabi's ADNOC, AI firm G42 plan IPO of technology joint venture AIQ -sources | Reuters

Abu Dhabi's ADNOC, AI firm G42 plan IPO of technology joint venture AIQ -sources | Reuters

Abu Dhabi National Oil Company (ADNOC) and Abu Dhabi artificial intelligence company G42 are having early discussions about a possible flotation of their joint venture technology firm AIQ, two sources with knowledge of the matter told Reuters.

AIQ, which is 60% owned by ADNOC and 40% by G42, uses artificial intelligence and machine learning to optimise processes, improve planning and increase profitability for ADNOC and the wider oil and gas industry.

The company is being considered for a possible initial public offering at the end of the year, said the sources, declining to be named as the matter is not public.

AIQ's owners are in the process of discussing whether to position the deal as an international transaction, or market the offering exclusively to the domestic investors, they said.

#Turkey Erdogan’s Top Economic Officials Pick #UAE for First Foreign Trip - Bloomberg

Turkey Erdogan’s Top Economic Officials Pick UAE for First Foreign Trip - Bloomberg

Two top Turkish economic officials are visiting the United Arab Emirates in their first trip abroad since joining President Recep Tayyip Erdogan’s revamped cabinet last month, as the government looks for more foreign cash.

Vice President Cevdet Yilmaz and Finance Minister Mehmet Simsek are set to meet UAE’s President Sheikh Mohamed bin Zayed Al Nahyan in the capital Abu Dhabi, according to people familiar with the matter, who asked not to be named as they aren’t authorized to speak publicly.

The purpose of the visit is to discuss economic cooperation between the two countries, Turkey’s state Anadolu Agency reported.

As Turkey turns the page on years of unconventional policies, it needs the financial backing of key allies as its $900 billion economy comes under strain. On Thursday, the central bank is poised take the biggest step yet in a return to economic orthodoxy by raising interest rates for the first time in over two years.

The outreach to the UAE underscores the improvement in relations between two traditional foes that previously clashed over a range of issues.

#Dubai Real Estate: Latest Property Spree Has Rich Buyers Taking More Risk - Bloomberg

Dubai Real Estate: Latest Property Spree Has Rich Buyers Taking More Risk - Bloomberg

On Dubai’s manmade island of Palm Jumeirah, soaring laser beams signal the latest outsized construction project getting started. At 71 stories high and with 76 penthouses, Como Residences will be the archipelago’s highest structure — with the cheapest unit priced at 21 million dirhams ($5.7 million).

A short drive down the city’s main highway, Emirati tycoon Khalaf Ahmad Al Habtoor is starting work on a housing complex that’ll add more than 1,700 homes in a single development. It’s a trend on show just about everywhere in the emirate — builders revving their engines in what’s expected to be the strongest construction cycle since 2017.

Long known for sharp booms and busts, Dubai had one of its most dramatic downturns in 2008, when a debt fueled real estate crash left some of its biggest developers teetering on the brink of bankruptcy. The Arab Spring sweeping the Middle East revived the market in 2011 as capital from Arab nations sought safety in Dubai. But the tides quickly turned in 2014 as a collapse in oil prices sent the residential property market on a seven-year downturn.

This time round developers are hedging their bets more, demanding upfront payments covering most of the property even before construction begins. The cash coming in from wealthy investors around the world is giving the emirate’s real estate market a big cushion and reducing the need for debt — but it also leaves buyers holding more of the risk.

#Saudi sovereign wealth fund PIF sells McLaren stake to Bahrain -Sky News | Reuters

Saudi sovereign wealth fund PIF sells McLaren stake to Bahrain -Sky News | Reuters

Bahrain's state investment fund Mumtalakat is buying preference shares and warrants worth 400 million pounds ($510.48 million) in carmaker McLaren from Saudi Arabia's Public Investment Fund (PIF) and Ares Management (ARES.N), Sky News reported on Wednesday.

The transaction will not lead to any new money being injected into McLaren, the Sky News report said, adding that an announcement from Mumtalakat on the deal will come on Thursday.

The purchase will expand Mumtalakat's majority stake in McLaren group, which includes the British supercar maker as well as McLaren Racing.

In July 2021, global investment firm Ares Management and Saudi's PIF provided much of a 550 million-pound equity investment in the McLaren group.

Bahrain's sovereign wealth fund could not be reached for comment. Ares Management declined to comment, while McLaren and the PIF did not immediately respond.

In June of last year, Mumtalakat's chief executive, Khalid Al Rumaihi, told Reuters that he expected McLaren to go public in two to three years.

Most Gulf bourses fall on Fed chief Powell's hawkish tone | Reuters

Most Gulf bourses fall on Fed chief Powell's hawkish tone | Reuters

Most Gulf stock markets were subdued in early trade on Thursday amid falling oil prices and following U.S. Federal Reserve Chair Jerome Powell's hawkish tone on rates.

Powell in his remarks to lawmakers in Washington on Wednesday said the outlook for two further 25-basis-point (bps) rate increases are "a pretty good guess" of where the central bank is heading if the economy continues in its current direction.

Most Gulf currencies are pegged to the dollar and any monetary policy change in the United States is usually followed by Saudi Arabia, the United Arab Emirates and Qatar.

In Qatar, the benchmark index (.QSI) slumped 1.1%, with most sectors trading in the red, with region's largest lender Qatar National Bank (QNBK.QA) dropping 2.1% and Masraf Al Rayan (MARK.QA) sliding 1.1%.

Dubai's benchmark stock index (.DFMGI) eased 0.1%, with Emaar Properties (EMAR.DU) falling 0.3% and National Central Cooling (TABR.DU) shedding 1%.

Saudi Arabia's benchmark stock index (.TASI) slipped 0.1%, dragged down by losses in finance and energy sectors, with National Shipping Company (4030.SE) dropping 2% and Jabal Omar (4250.SE) falling 0.8%.

The world's largest Islamic bank by assets, Al Rajhi Bank (1120.SE) and oil company Saudi Aramco (2222.SE) lost 0.4% and 0.3% respectively.

Elsewhere, shares of First Milling Co (2283.SE) shot up as much as 30% to 78 riyals per share in its market debut from an offer price of 60 riyals per share.

Crude oil prices - a key catalyst for the Gulf's financial markets - dipped on Thursday with Brent crude down 0.4% at $76.780 a barrel at 0800 GMT.

In Abu Dhabi, the benchmark stock index (.FTFADGI) gained only marginally, helped by a 2.8% rise in Alpha Dhabi Holding (ALPHADHABI.AD) and 0.9% gain in Q Holding (QHOLDING.AD).

But the United Arab Emirates largest lender First Abu Dhabi Bank (FAB.AD) lost 0.7%.