Qatari royal-linked group to buy Dexia's BIL, KBL
Luxembourg, October 10, 2011
The Qatari investment group intending to take over Dexia's Luxembourg unit BIL belongs to members of the Qatari royal family, who are also buying KBC's private banking unit, Luxembourg's Finance Minister Luc Frieden said on Monday.
'The KBC Group has informed that it has sold KBL to an investor from Qatar... The fact that this family group has bought one entity (KBL) and intends to buy the other (BIL) is good for the Luxembourg financial sector,' Frieden told a news conference.
Luxembourg itself still aimed to take a minority stake in Dexia's Banque Internationale Luxembourg (BIL) unit, though the size of the investment was not yet agreed, Frieden told a news conference, adding that he hoped the whole situation would be settled by the end of the month.
Frieden also said Royal Bank of Canada (RBC) intended to use its right of first option to buy out BIL's stake in RBC Dexia Investor Services, a funds custody joint venture, and that the matter was under discussion.
'Talks are taking place between Dexia and RBC in view of a takeover of that stake by RBC. These negotiations are at a very advanced stage too,' he said.
RBC Dexia Investor Services had $2.8 trillion in client assets under management at the end of last year. - Reuters