Dubai mortgage lenders Amlak Finance and Tamweel in merger talks

Dubai lenders Amlak and Tamweel look to combine


DUBAI, United Arab Emirates: Dubai mortgage lenders Amlak Finance and Tamweel say they are considering a merger, but investors appear to have doubts about such a deal.

Shares of both companies sank Sunday despite the companies' assurances that a deal would bring benefits.

Amlak and Tamweel announced that they have begun exploring a tie-up Saturday. They say the combined company would have a balance sheet worth 27 billion dirhams (US$7.35 billion).

The merger talks come as global credit markets tighten amid the financial fallout on Wall Street.

AP