Deyaar Says not in Merger TalksThursday, December 24, 2009
Deyaar said it is not in merger talks, and said it remained focussed on exploring growth opportunities in the United Arab Emirates and other markets.“The company’s board is not currently engaged in any merger talks with any firm,” it said in a statement on Wednesday, adding it has not provided any information to any entity regarding any potential merger. Shares of both companies fell on Dubai’s main index, amid a broad decline by UAE property stocks. “I don’t think a merger would improve their financial positions,” said Julian Bruce, EFG-Hermes director of institutional sales. Speculation about a possible merger between Deyaar and Union Properties began last year, although both firms denied they were in talks.
In March, Deyaar said it would consider merging with another company but was not in any consolidation talks. Deyaar’s shares closed five per cent lower, while Union Properties declined 4.4 per cent. “There are still a lot of doubts about Union Properties, its short-term prospects,” said Chamel Fahmy, regional senior sales trader at Beltone Financial. “The stock has shown a lot of weakness. Investors generally stay away although there’s been some pure speculating on the stock ... the report could be an element.”Source: Khaleej Times