NBAD and Ahli United Bank deny media reports of merger discussions

Dubai: National Bank of Abu Dhabi (NBAD) on Sunday denied reports that it was considering merger with Bahrain's Ahli United Bank, that prompted the latter's share price.

In an e-mailed statement, NBAD said: "The bank currently is not a part in any negotiations or talks with any bank or financial institution in the region for merger or acquisition."

NBAD, Abu Dhabi's largest lender, was responding to media reports on Sunday in two Kuwaiti newspapers saying it was studying a possible merger with Bahrain's largest lender, Ahli United Bank.

"As a responsible, transparent, and listed company in Abu Dhabi Exchange (ADX), NBAD will disclose any sensitive and vital information to the market, shareholders and the public to protect its stakeholders' interests while adhering to its policy of not commenting on rumours and speculation," it said.

Earlier on Sunday, a Reuters report said, shares of Ahli United Bank jumped in reaction to the media reports.

Ahli United Bank "was not the source of the information and was not aware of the source of the information," it said in a statement on the Bahrain bourse website.

In a separate filing on the Kuwaiti bourse website, Ahli said the news published was "not true."

Kuwait's Al Wasat said in an unsourced report talks had reached an advanced stage and a deal had already been ratified by both banks.

It added that Ahli United Bank stock had been valued at 600 fils per share for the initial deal, while National Bank of Abu Dhabi's stock was valued at Dh24 per share.

The paper said one NBAD share would be worth three Ahli shares.

A second Kuwaiti daily, Al Watan, said in an another unsourced report that a potential merger was being studied and might take place via a share swap after the stocks of both banks had been evaluated.

Neither paper gave an overall value for a possible deal.

Shares of Ahli United, which are also listed in Kuwait, ended at 355 fils on Sunday, while NBAD shares closed at Dh21.3. Ahli United shares ended at $1.34 in Bahrain.

- With inputs from Reuters