Dexia wants more gov't funds before unit sale to Qatar - Banking & Finance - ArabianBusiness.com
A very good summary, I suppose. It confirms Precision Capital knows how to do it. From initial quotes of Euros 1.5 million for the acquisition, the renegotiated price settled at Euros 730 million, with the seller injecting another 204 million. Because of covenants in the acquisition agreement tied to Basel III.
Qatar now owns 90% of BIL and the Luxembourg government acquires the remaining 10%. A trophy for the loser in some ways, as Luxembourg is guarantor of the very sick DEXIA to the tune of Euros 3 billion, which means a huge risk.
Qatar has been magnanimous in allowing 11 Luxembourg citizens and one Qatari to sit on the Board. It can be viewed as a little window dressing, after public opinion, unions and employees became increasingly uncomfortable with the almost simutaneous sale of a number of Luxembourg household names to Qatar such as Cargolux, BIL and KBL.
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