Barclays’ Qatari baggage gets even heavier 2 Aug 2012 Gulf funds spared the UK bank a state bailout in 2008. But the capital always looked costly and an “advisory” relationship with Qatar slim value. If a regulatory probe into disclosure discredits what’s left of Barclays’ top team, the deal will look even more like a Faustian pact.
Sovereign funds still hungry for Western banks 19 Jul 2012 Bad early-crisis bets haven’t put rich states off backing global lenders. Qatar and Norway have upped their exposure to Credit Suisse, while Singapore’s Temasek has joined the throng. The enthusiasm reflects a lack of attractive alternatives, as much as hopes for a recovery.
Islamic bonds offer cheaper funding for lucky few 17 Jul 2012 Sharia-compliant bonds, once a pricey source of funds, are now cheaper than their conventional equivalents. A growing pool of captive Islamic capital is driving down yields and spurring interest far beyond the Middle East. But not everyone can take advantage.
Valentino makes Permira look not shabby nor chic 12 Jul 2012 Permira’s top-of-the-market acquisition of Hugo Boss and Valentino in 2007 looked like extravagant folly. Five years on, the buyout firm has sold Valentino to the Qatar royal family for a punchy price. That leaves its fashion binge looking respectable, if not glamorous.
Qatar evolves into active not activist investor 3 Jul 2012 The Gulf state has sent a message with its Glencore-Xstrata intervention: it won’t shy from demanding value when shareholders are put on the spot. But for all the noise, Qatar probably isn’t ready to become a genuine activist targeting underperforming companies in need of a kick.
Glencore-Xstrata deal looks hard to rescue 27 Jun 2012 Qatar’s call for much sweeter merger terms is a big obstacle. Xstrata’s 10 pct shareholder can’t easily retreat from its public demand. And Glencore can’t justify a sizeable raise to its own investors. If the Qataris hold firm, the deal may have to be parked for another day.
Qatar play for EFG Hermes stokes backlash in Egypt 6 Jun 2012 The possible bidding war for the investment bank illustrates the growing fears about the emirate’s influence in post-Mubarak Egypt. EFG agreed to be partially taken over by QInvest. But the Gulf state’s rivals promise to keep the bank whole, and Egyptian. Now anything can happen.
Qatar takes Shell friendship to next level 11 May 2012 Adding a stake in the UK oil major to holdings in Total, Xstrata and European Goldfields adds a degree of diversification to the emirate’s resource exposure. But strategic ties are strong. Qatar is home to two Shell projects. Formalising the relationship is a natural next step.
Oil price band of comfort is precariously narrow 10 May 2012 It only takes a $20-a-barrel swing to move markets from fretting about the release of emergency reserves to worrying about top producers falling into fiscal deficits. Hard-to-cut higher spending by a growing number of big exporters may make the concerns permanent.
Qatar brokers nifty exit for Egypt’s EFG Hermes 7 May 2012 State-backed QInvest is cherry-picking the assets of one of the Mideast’s top investment banks. The new JV will give EFG shareholders a payout worth one third of the bank’s market cap. It’s an elegant way to salvage value from a troubled Egyptian bank.
Qatar’s cash cow can ride out a global gas glut 3 May 2012 The emirate’s grip on gas markets will weaken by the second half of the decade due to oversupply. That might knock some of the swagger out of the energy-dependent state. But Qatar’s low production cost, long-term contracts and significant market share should limit the fallout.
Qatar plays merger-maker at Glencore-Xstrata 12 Apr 2012 The Gulf state has been a successful arbitrageur in the past. Its 5 pct stake in Xstrata is under water following the recent equity market sell-off. But Qatar could provide extra leverage to help the miner extract a sweeter offer from suitor Glencore.
Prestige and power fuel Qatar’s frantic shopping 3 Apr 2012 The tiny Gulf state is racking up stakes in European big names. Since Qatar will generate around $50 bln of spare cash this year, this is likely to continue. There may be some apparent logic to the pick n’ mix of value and vanity investments. But it doesn’t look like a strategy.
Qatar forms a taste for foreign strategic assets 15 Mar 2012 After eyeing European aerospace and defence firm EADS, Qatar has snapped up a $2.6 bln stake in French oil major Total. That is a poor diversification of the Gulf state’s hydrocarbon wealth. But it might be an effective way for Qatar to shore up influence with its gas customers.
Qatar still hasn’t found gold in Credit Suisse 12 Oct 2011 Credit Suisse’s preferred advisor status to the Gulf country is a source of envy, as Qatar prowls for assets in a period of M&A dearth. So far the relationship doesn’t seem to have suffered from Qatar’s 2008 investment in the bank, which proved to be a mixed blessing.
Qatar steals $1 bln march on European Goldfields 3 Oct 2011 The Gulf country is hungry for exposure to gold. Its offer to finance a Greek mining project will secure it at least 27 pct of the Canadian group at a snip of its mooted July valuation. But in current markets, investors will have to think hard before turning away the Qataris.
European bank rescues risky terrain for Gulf SWFs 22 Sep 2011 It’s 2007 again in the banking sector. Valuations are rock bottom and troubled institutions are turning to the Gulf. But the track record of the region’s sovereign funds is mixed. Some portfolios are already bulging with financials. At least SWFs can try to learn from the past.
Al Jazeera shake-up may signal shift for Qatar Inc 21 Sep 2011 It isn’t clear why Wadah Khanfar, the director who put the outspoken state-owned broadcaster on the map, resigned. But the quiet frenzy over his departure amid the tumult in the Arab world underscores why it may be in Qatar’s interests to strengthen its ties with the Kings’ club.
Qatar risks a foreign investment pile-up 19 Sep 2011 The gas-rich state might have around $100 bln to throw at foreign assets, based on guesses at the size of its sovereign fund. A 7.5 pct stake in Franco-German EADS would cost less than $2 bln. But Qatar’s overseas spending doesn’t look as focused as its domestic growth ambitions.
Qatar can afford more $8 billion handouts 9 Sep 2011 Nationals employed in the public sector will get a salary rise of up to 120 pct. The inflation risk is limited - Qataris make up a fraction of the population. Handouts are unsustainable in many parts of the region, but Qatar can afford to maintain its peculiar “social-contract”.