Arabtec denies Drake merger speculation
Dubai, December 17, 2013
Dubai's Arabtec Holding denied on Tuesday what it called "recent market and media speculation" that it was looking to buy local contractor Drake & Scull.
"Arabtec Holding confirms that there have been no discussions between the management of both companies about a potential deal, and there are no current plans to acquire Drake & Scull either in full or in part," it said in a bourse filing.
Shares in Drake & Scull, which are up 93 per cent year-to-date, have been buoyed by the merger speculation as well as by Dubai's strengthening economy and real estate market, and expectations that the firm may win contracts related to Dubai's hosting of the 2020 World Expo.
In May, Drake & Scull's chief executive Khaldoun Tabari said he had no plans to sell his stake in the company, though he added that there would be more partnerships on projects with Arabtec. - Reuters