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Dexia private bank sold to Qatar and Luxembourg

Dexia private bank sold to Qatar and Luxembourg
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Qatar’s royal family is to buy 90 percent of bailed-out Dexia’s private banking arm as the Franco-Belgian group is broken up.

The rest will be purchased by the Luxembourg government.

The price for Banque Internationale Luxembourg (BIL) is 730 million euros, less than analysts had estimated.

Morgan Stanley estimated the value of BIL at 1.0-1.7 billion euros in October, with reports at the time saying the overall price was likely to be around one billion euros.

“It (the price) looks a bit low,” KBC Securities analyst Dirk Peeters said on Tuesday. “But everyone knows that Dexia have to sell. They may have been willing to pay 800 to 900 million euros, but thought they’d put in a lower offer.”

Back in October the Qataris bought the private banking business of Dexia’s Belgian rival KBC.