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: April 19, 2015
UAE. Deloitte experts consider that residential transactions have slowed to a more sustainable level; Leveling off in capital growth, in certain areas; This new characteristic suggests a market that is in fact maturing and arguably strengthening.
date:Posted: April 19, 2015
INTERNATIONAL. The EIA once again capitulated on the myth that rig counts don't matter and the productivity of wells would largely offset, leaving the industry on a continuous path to higher output.
date:Posted: April 19, 2015
QATAR. The first Renminbi Clearance Centre (RCC) in the MENA region, to be located in Doha; The RCC will allow for claims denominated in RMB to be settled in Doha and exchanged for other currencies, including the Qatari Riyal (QAR).
UAE. Deloitte experts consider that residential transactions have slowed to a more sustainable level; Leveling off in capital growth, in certain areas; This new characteristic suggests a market that is in fact maturing and arguably strengthening.
dhgate