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e-goverment
Qatar's $60 bln fund eyes U.S.
financials-source
Mon Jan 21, 2008 8:04am EST
By John Irish
DOHA, Jan 21 (Reuters) - Qatar's $60 billion
sovereign wealth fund is looking at possibly
buying into financial services and construction
companies in the United States and Europe, a
person familiar with fund said on Monday.
The Qatar Investment Authority also plans to
use its stakes in the London Stock Exchange
(LSE.L:
Quote,
Profile,
Research) and Stockholm-based OMX AG
(OMX.ST:
Quote,
Profile,
Research) to develop its own capital
markets, and sell shares in its exchange to the
public, said the person, who asked not to be
identified.
"We are in research and analysis mode," said
the person. "The U.S., Western Europe and the
U.K. market have seen revaluation ... the
financial and construction sectors have
experienced significant downturn."
Gulf Arab investors, including Saudi Prince
Alwaleed bin Talal and Kuwait, have been at the
centre of rescue packages for Western lenders
such at Citigroup Inc (C.N:
Quote,
Profile,
Research) and Merrill Lynch & Co (MER.N:
Quote,
Profile,
Research), hit by write-downs over their
home loans business.
Kuwait agreed last week to invest $5 billion
in Citigroup and Merrill Lynch.
Qatar owns 15 percent of the LSE, and almost
10 percent of Nordic and Baltic bourse operator
OMX, vying with Dubai which bid to take over OMX
and later agreed to sell it to Nasdaq Stock
Market Inc (NDAQ.O:
Quote,
Profile,
Research) for a share in the combined
company.
"Our interest in the LSE is to work on a
long-term relationship to help develop the DSM
and Qatar's capital markets," said the person of
the Doha Securities Market, the Gulf's
fourth-largest exchange.
As part of its September deal with Dubai,
Nasdaq agreed to take a 33 percent stake in the
Dubai International Financial Exchange, renaming
the bourse Nasdaq-DIFX and allowing Dubai to use
the Nasdaq brand and technology across North
Africa, the Middle East and South Asia.
Qatar, with a population of 1 million and
holder of the world's third-largest natural gas
reserves, is looking to use its petroleum wealth
to diversify its economy. Standard Chartered
puts the value of QIA assets at $60 billion.
"Qatar needs to have total capital market
infrastructure, and an exchange that can handle
cash, derivatives, clearing systems... with the
best out there," said the person. "That requires
strategic partnership to attract them to Qatar."
"The DSM needs to be converted into a private
company," said the person. "The leadership wants
to allow Qatari citizens and investors to share
in it."
The QIA in November dropped its 10.6 billion
pound bid for J.Sainsbury's (SBRY.L:
Quote,
Profile,
Research), Britain's third-largest
supermarket group.
"The credit markets were no longer offering
terms to make the investment meet the criteria,"
said the person. "If you are leveraging to take
100 percent into the company then you have to be
guided by credit markets." (Writing by James
Cordahi; Editing by David Cowell)
From Reuters:
http://www.reuters.com/article/mergersNews/idUSL2141450720080121
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