Amlak, Tamweel to merge in Jan 2010

DUBAI - A merger between troubled Dubai-listed home finance companies Amlak Finance and Tamweel will be completed by January next year, the economy minister of the United Arab Emirates said Tuesday.

A merger between the two companies has been in the pipeline since last November.

"We are moving very forward" with the merger, Sultan bin Saeed Al Mansouri told reporters in Dubai. "By January 2010 we'll start the process of implementing the solutions we have."

Al Mansouri went on to give further details about Dubai's plans to issue the second $10 billion of its $20 billion debt program to support its hard-pressed state-controlled companies.

"Euro bond is the best" option for the offering, Al Manouri said, adding that the emirate would only sell the debt if needed. Dubai may need to borrow more money to help pay off its existing debt pile that is estimated to exceed $80 billion.