Abu Dhabi’s Aabar Buys 4.99% of UniCredit, CEO Says

Discussion in 'Wall St. News' started by ASusilovic, Jun 24, 2010.

  1. June 24 (Bloomberg) -- Aabar Investments PJSC, the Abu Dhabi-based company that is the largest shareholder in Daimler AG, bought a 4.99 percent stake in Italy’s UniCredit SpA, Chief Executive Officer Mohamed Badawy Al-Husseiny said.

    “The financial services sector is something we are interested in,” Al-Husseiny said in a phone interview today from Abu Dhabi. Aabar bought the stake on the market, he said.

    A spokeswoman for UniCredit in Milan declined to comment. Radiocor news agency reported the news earlier today.

    Aabar’s stake in UniCredit, Italy’s biggest bank, is valued at about 1.84 billion euros ($2.3 billion), based on yesterday’s closing price. It makes the company the lender’s second-largest shareholder after Mediobanca SpA, and ahead of a foundation that owns 4.98 percent, according to regulatory filings this month. The Central Bank of Libya owns about 4.6 percent.

    Aabar, which acquired American International Group Inc.’s private banking unit, bought 49.8 million euros of UniCredit’s convertible bonds in March 2009. The bonds are exchangeable into ordinary shares and mature in 2050.

    The Italian bank this year raised 4 billion euros by selling new shares and is shedding non-strategic assets and cutting costs to strengthen its capital. Among the businesses it’s reviewing, UniCredit is discussing options for its Pioneer Global Asset Management division. The lender in May reported 16 percent increase in first-quarter profit to 520 million euros, helped by trading income.


    European credit and sovereign crisis de luxe... :D :D :D
  2. Question.

    Why don't these various "investors" start their own bank instead of dumping money into cash starved institutions that gave up lending anways?

    What happpened to shadow banks?

    There are still legit customers with good credit who need loans.

    ABS probably still is a viable business model to keep money moving and make a profit.
  3. We've been through "this" before. When foreign investors get "hot & horny" for foreign assets........you know how this will end. :eek: :D :(
  4. Nazz,

    I expected your suggestion. :) Anyway Libya 4,6 % + 4,99 % is a quite a strong force in foreign hands...
  5. Nazz,

    I expected your suggestion. :) Anyway Libya 4,6 % + 4,99 % is a quite a strong force in foreign hands...

    Are you long Oracle ? :)
  6. I don't trade it but some people do call me one. :)