of the principal shareholders of Dubai from the sale of the rights of the Bank Muscat: sources

Dubai Group, the investment vehicle usually owned by the emirate's second largest shareholder of Bank Muscat (SAOG Bank Muscat >>), sold his rights to an issue of buying of shares by the lenders of Oman, a significant reduction, the two sources on Sunday. Dubai Group, the investment vehicle usually owned by the emirate's second largest shareholder of Bank Muscat (SAOG Bank Muscat >>), sold his rights to an issue of buying of shares by the lenders of Oman, a significant reduction, the two sources on Sunday. The Bank Muscat, the largest lender of the Sultanate of Oman, has offered to raise new shares to existing shareholders at a price 25 percent to over $ 251 million to fund the growth in lending and venture into Islamic banking. Dubai Group, was in the middle of a restructuring $ 10 billion purchase rights to use an additional 33.387 million shares, at about 0.06 rials ($ 0.16) is estimated. The investment firm sold most of these rights at a discount of nearly 50 percent in two separate over-the-counter offerings from 0.03 to 0.035 Rial Rial every Thursday, the sources speaking on condition of anonymity. "The sale of rights is a significant reduction in net present value," said one source market. "This shows that the group is very little incentive to commit additional capital has in the bank and tried to collect all the value which he can." Dubai Group declined to comment. The Bank Muscat has not responded to requests for comment. Oman allows the right during the subscription period will be replaced, so that existing shareholders to pass on their rights to willing buyers. Sunday, Bank Muscat shares rose 3.2 percent to 0.516 rial. The price is $ 0073 Riyal rights. 0.427 Rial in Bank Muscat offers - and the current market price of rights price is normally calculated as the difference between the issue price of the rights. The bank's shares closed at 0.500 rial on Thursday. Dubai group bought its 14.7 percent stake in Bank Muscat for $ 619 million in 2007 through a private placement, making it the second largest shareholder in the bank after Royal Court Affairs of Oman, the Omani ruler of the interests of staff. The company saw the value of that interest at roughly $ 400 million at current market prices are. DEBT woes Dubai Group, part of Dubai Holding , an investment firm employees Sheikh Mohammed bin Rashid al-Maktoum, has been hit hard by the global financial crisis and deteriorating saw the value of most assets. Like most other organizations, with the United States began in the emirate, he would negotiate with creditors to restructure debt and extend maturities. Dubai Group is based on the sale of assets are based in order to pay its obligations, and time to recover to the values ​​before the sale. His financial assets include interests in Egypt, EFG Hermes (EFG Hermes Holding SAE >>) to hit by turmoil in the Middle East, and forced Popular Bank of Cyprus (Cyprus Popular Bank Public Co Ltd >>), Marfin earlier, the recapitalization of Cyprus, international rescue operation to search. Dubai Group is the Dubai Financial Market, which owns 20.6 percent of the London Stock Exchange. In the latest blow to the negotiations to restructure the company, abandoned Royal Bank of Scotland (>> Royal Bank of Scotland Group plc) and two other international banks talks, and threatened legal action against the investment vehicle to take, sources familiar with the matter told Reuters last week. The Bank Muscat shares were down 10 percent since the sale of rights began on 2 July, compared with a decrease of four percent for the broader index over the same period. The shares are up 23 percent since the beginning. ($ 1 = .3851 Omani Rial)