Bahrain's TAIB Bank is a step closer to being taken over by Dubai Financial, after it was announced yesterday that investors holding at least 60 per cent of the bank's stock had agreed to sell their shares.

The purchase is worth about $175 million, based on the $2.73 per share the Dubai Financial said in July it was prepared to pay and outstanding shares of 107.01 million, Reuters said.

"Dubai Financial will proceed with the purchase of 60 per cent or more of the TAIB shares as all eligible and valid shareholder applications have been accepted by Dubai Financial," the emirate-owned firm and unidentified "key" shareholders said in a statement posted on the Bahrain Stock Exchange website.

TAIB, established as a private bank in Bahrain in 1979 and listed on the bourse since 1994, specialises in wealth management and investment banking.

Dubai Financial, a part of Dubai Group, said in July it had agreed to buy around 37pc of TAIB Bank and was looking to raise its stake to 60pc.

Dubai Financial, which last month agreed to buy 15pc of Oman's Bank Muscat for $619 million, had agreed with TAIB's three biggest shareholders to buy 60pc of their stock in the lender.

The three investors owned 62pc of TAIB shares. Dubai Financial said it would offer other TAIB shareholders $2.73 per share to raise its stake to 60pc.

TAIB Bank vice president Aseesh Goel told the Gulf Daily News, our sister newspaper, yesterday the sale was good for the bank.

"This is a positive move for TAIB Bank - it will be part of Dubai Financial, and Dubai Financial is a big name," he said.

"The offer was given sometime back by Dubai Financial to our shareholders, the shareholders have responded and the applications have been accepted by Dubai Financial and now we are waiting for the regulator's approval," he added.-TradeArabia News Service