Libyan sovereign wealth fund is said to boost UniCredit stake
Source: BI-ME with Bloomberg , Author: posted by Bi-ME staff
Posted: Sat September 18, 2010 6:18 pm

INTERNATIONAl. UniCredit SpA investor Libyan Investment Authority boosted its stake in Italy's biggest bank since July and told the country’s stock market regulator that it’s a separate entity from the Central Bank of Libya, reported Bloomberg, citing two people with knowledge of the matter.

The Libyan sovereign wealth fund informed Italy’s Consob in a letter that it purchased an additional 0.5% stake in the Milan-based lender, raising its holding to 2.6%, said the people, who asked not to be identified because the letter is confidential.

The Libyan Investment Authority, responding to requests from Italian regulators to clarify its position, also said it’s acting independently from the Central Bank of Libya, the people said. The central bank owns almost 5 percent of UniCredit, making it one of the top three investors in the bank.

The recent Libyan investments in UniCredit have triggered opposition from some members of Prime Minister Silvio Berlusconi’s government, and raised legal questions about whether the investors acted independently. UniCredit’s bylaws restrict investor voting rights to 5%.

Libyan investors chose “autonomously” to buy the stakes in UniCredit, Chief Executive Officer Alessandro Profumo told reporters in Milan September 6. The bank is strengthening its ties to Libya as Berlusconi fosters trade relations with the country, led by Muammar Qaddafi.

The Central Bank of Libya last month assigned a banking license to UniCredit, which became the first foreign bank allowed to operate in the country.

The 0.5% purchase by the Libyan Investment Authority was reported Friday by financial daily Il Sole 24 Ore.

Consob and the Bank of Italy asked the two Libyan investors to prove that they are independent entities after the Libyan sovereign wealth fund bought a 2.1% stake in UniCredit in July.

A Consob official confirmed today that it received a letter from the Libyan Investment Authority fund concerning its stake in UniCredit, though he declined to disclose the contents.

UniCredit’s board meets September 30 to discuss the matter and send a response to the Italian regulators.

 

MIDDLE EAST BUSINESS COMMENT & ANALYSIS

date:Posted: August 20, 2017
UAE. According to MEED Projects, just US$56bn worth of contracts were awarded in H1 2017 compared with US$69bn over the same period in 2016; Long-term prospects bright with over US$2 trillion of known active projects in the pipeline across the GCC.
date:Posted: August 18, 2017
UAE. As many as 292 tenders with an estimated value of US$9.5 billion were awarded in Q2, while the total value of urban construction project awards set to reach US$50.9 billion in 2017, according to BNC Network.
date:Posted: August 17, 2017
UAE. Inaugural Global Interconnection Index finds interconnection becoming an essential building block of the global digital economy.
dhgate