Abu Dhabi’s benchmark stock index advanced to the highest level in more than three years as the emirate’s two biggest real-estate companies prepare to meet this week to vote on a merger.
Aldar Properties surged five per cent and Sorouh Real Estate gained the most in more than three weeks. The developers, which were the most traded by value on the gauge, will hold shareholder meetings on February 21 to vote on the planned combination.
The ADX General Index rose 1.1 per cent to 2,968.54 points, the highest since November 2009. Shares of Aldar tumbled 14 per cent through yesterday since the developer’s board approved on January 21 a plan to offer 1.288 shares for each Sorouh stock in a government-backed acquisition to create Middle East’s third-largest publicly traded developer.
Sorouh’s stock has advanced eight per cent since the announcement as investors deemed the terms of the merger to favour the smaller of the two developers.
“Investors are accumulating before the meeting this week,” said Waleed Al Khateeb, Dubai-based senior finance manager at Daman Securities LLC. “There was some excessive selling after the merger was approved last month.”
Read more: http://www.bloomberg.com/news/2013-02-17/abu-dhabi-shares-rise-to-2009-high-before-aldar-sorouh-meetings.html
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