ICD reaches deal with leading Colonial shareholders

The Investment Corporation of Dubai (ICD) has agreed with leading shareholders of Spanish property firm Colonial on the broad terms of a 3 billion euro ($4.56 billion; Dh16.74 billion) takeover, Dow Jones reported late on Tuesday.

The development came over a month after the UAE-based investment company first announced its plan to buy major stakes in the Spanish property firm. Both parties have also missed a negotiation deadline set on Monday as shareholders demanded clarification from ICD regarding the takeover bid.

Creditors, likewise, were eagerly anticipating a favourable outcome from the deal since a failed negotiation would leave them with the burden of managing an indebted Colonial. Last year, a group of investors composed of Goldman Sachs, Royal Bank of Scotland, Eurohypo and Calyon pooled a 7.2 billion euros (Dh40.10 billion) fund to salvage the Spanish company. International media said creditors have not so far received a return on their investments.

Reuters also said that shares in Colonial rose after a trading suspension was lifted, adding 4.3 per cent to 1.21 euros at 0808 GMT.