Kuwait’s CBK rallies on reported Qatari interest

KUWAIT - Shares of Commercial Bank of Kuwait (CBK) jumped more than 5 percent to a record high on Saturday after a newspaper said two Qatari banks were interested in buying the lender.

By (Reuters)

Published: Sat 5 May 2007, 6:23 PM

Last updated: Sat 4 Apr 2015, 10:56 PM

Al-Qabas daily, citing unnamed sources, said Qatar National Bank (QNB) officials were in Kuwait for talks on buying a stake.

It added that Commercial Bank of Qatar had also expressed interest in buying a stake in the Kuwaiti bank. Officials from the three banks could not immediately be reached for comment.

The stake could be sold for about 2 dinars ($6.92) per share, al-Qabas said.

CBK shares jumped 5.41 percent to 1.56 dinars, their highest close on record according to Reuters data. The stock, which is up more than 41 percent this year, has rallies more than 17 percent in the last three trading days.

More than 6.58 million shares were traded, more than four times the 90-day average of 1.56 million.

“Commercial Bank of Kuwait has good potential and would offer a good package for Qatari banks wishing to enter the Kuwaiti market,” said Mustafa Behbehani, Director of Kuwait Gulf Consulting Co.

Qatar government-controlled QNB said on Thursday it was seeking investment opportunities outside its home nation but declined to comment on a newspaper report it was buying CBK.

Abdul-Majeed al-Shatti, Commercial Bank’s chairman, declined to comment on Thursday.

Shatti told Reuters in an interview in April that Commercial Bank was considering a merger, a takeover and other approaches from foreign and local investors.

All options were on the table, including selling a minority or majority stake, Shatti said at the time, declining to identify any suitor.

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