Dubai shares advanced for the first time in three days, led by property and banking stocks, on speculation Deyaar Development PJSC and Union Properties PJSC are studying the possibility of a merger. Deyaar, the property company that has put a quarter of its projects in Dubai on hold, climbed 4.1 percent to 0.51 dirham. Union Properties, the Dubai-based developer that suspended a Formula One-themed park project, jumped 5.9 percent to 0.72 dirham. Both shares closed at their highest in a month. “Merger rumors continue to persist and some believe the companies are currently evaluating their assets,” said Mohammed Ali Yasin, the managing director of Shuaa Securities. “Investors like the idea because it would create synergy between companies that have similar business models” Deyaar declined to comment when contacted by Bloomberg. Union Properties is “not in any merger discussions with any company,” Chief Executive Officer Simon Azzam said in an e-mail today.
reported by Bloomberg
