Dubai Investors Question Emaar's Merger As Shrs Slump
Investors Sunday showed their anger over the surprise merger between Dubai's Emaar Properties PJSC (EMAAR.DFM) and three struggling Dubai government-owned real estate companies. Shares in Emaar tumbled almost 10%, the sharpest decline since Nov. 18, as investors questioned how the developer will benefit from the deal that may create an entity with a vast land bank and 13.4 billion U.A.E. dirhams ($3.65 billion) of debt. "Investors are nervous," said Imam El Nour from Asayel Sales and Bonds, an Abu Dhabi-based brokerage firm. Emaar, the Middle East's largest developer, plans to merge with Dubai Properties LLC, Sama Dubai LLC and Tatweer LLC, units of Dubai Holding LLC, the conglomerate controlled by Dubai's ruler, the companies said in a joint statement Friday.