KUWAIT (Reuters) – Kuwait’s Tamdeen Investment Co., the second-largest shareholder in Ahli United Bank, said on Wednesday it had rejected an offer by International Bank of Qatar to buy into Bahrain’s biggest lender.
Tamdeen said last month it and other investors it represented had agreed in principle to accept International Bank’s bid for a 55 percent stake in Ahli United.
The offer had valued the bid at as much as $6.1 billion, which would be the biggest Gulf Arab cross-border transaction.
But Tamdeen and its parent company, Tamdeen Real Estate Co. , said on Wednesday in a statement on the Kuwaiti bourse Web site that they had failed to resolve differences with the Qatari bank over due diligence on Ahli United.
“Since the final price will be based on this study, it is impossible for the buyer to carry out this study and then determine the final share price,” the statement said.
International Bank, an affiliate of National Bank of Kuwait, said on Sunday talks to buy a stake in Ahli United had stalled as Ahli investors were insisting that an independent party and not the Qatari firm have access to the bank’s books.
Tamdeen said it was speaking for other investors as well, without saying who they were.
“Tamdeen Investment Co. decided not to accept the offer by IBQ for its stake and that of other investors in Ahli United Bank shares,” the statement said.
The Kuwaiti stock exchange said trading in shares of Tamdeen Investment and Tamdeen Real Estate would resume on Sunday.