ISLAMABAD, 16 September — Abu Dhabi and Bestway Consortium have acquired and moved in to operate United Bank Ltd. — Pakistan’s fourth biggest bank, by investing Rs.12.35 billion, and are likely to sail through successfully to wholly own it. The winners have paid half of the bid price, officials said.

The balance will be paid by the third week of October. The consortium of Abu Dhabi Group (UAE) and Bestway Holdings Limited, (UK) London (ADG-BHL) care of Bank Alfalah Ltd., Dubai, has got the bank for Rs.12.35 billion in a second, open bid after it improved by Rs.50 million its own publicly made offer of Rs.12.3 billion. The highest, and tense, financial drama in Pakistan’s 55-year history was played out in a small basement room of the government’s Privatization Commission (PC) at Islamabad’s Constitution Avenue where bankers, investors, and financiers waited breathlessly for the auctioneer’s hammer to drop. The drama lasted only a few minutes, because after ADG-BHL had improved its own offer, the other two competitors — Pakistan’s Muslim Commercial Bank (MCB), and consortium of Union Bank and Associates (CUBA) did not take the bait, and did not up the offer.

"The UBL goes to Abu Dhabi and Bestway Group," Abdul Hafeez Mirza, conductor of the bidding and PC’s director general for banks, announced in the presence of Altaf M. Saleem, minister for privatization.

In fact, the second and final bidding, was a matter of few moments. This high financial drama had started in June this year, when in a open bidding Pakistan’s MCB offered Rs.8.5 billion. ADG-BHL had then bid for Rs.4.8 billion and CUBA Rs.4.5 billion.

MCB, following public criticism and objections that the UBL was being sold "too cheaply" as the government had invested more than Rs.22 billion in repaying its previous losses and restructuring it alone, besides the fact that it has massive assets and real estate, raised its own bid to Rs.12.0 billion. It started the race and ADG-BHL, dramatically, upped the amount to Rs.12.3 billion from its original Rs.4.8 billion bid.

Several meetings then took place between Finance Minister Shaukat Aziz and Dr. Ishrat Hussain, governor, State Bank of Pakistan (SBP) the central bank, on the one hand and UK-based Pakistani businessman and financier Sir Anwar Perveiz of ADG-BHL on the other. Sir Anwar who is chairman of Bestway Holdings and is known for his chain of department stores in UK and for cement manufacturing in Pakistan.

MCB Chairman Mohammad Mansha urged both Aziz and Dr. Hussain to stick to the PC’s bidding procedure, accept his offer and hand over UBL to him. But, as the Cabinet Committee on Privatization (CCoP), headed by Aziz, decided to go for second, and open bidding, MCB threatened to go to court against the government to get the bank, and decided to boycott the second bidding.

President Pervez Musharraf, reportedly had a 20-minute telephone conversation with Mansha to persuade him not to boycott the second bidding, and to improve upon his own offer. But MCB presentative Ali Munir told this correspondent that he was attending the bidding just as an observer. He did not improve upon the MCB offer. He said, his management has already given its views and objections regarding the fresh bidding, and its "right to buy UBL, on the basis of its Rs.12 billion offer." Shaukat Tareen, president of the Union Bank, representing CUBA also attended the bid but did not improve on the going price.

This purchase transaction which has just materialized is described by analysts as "indicative of Gulf and Middle East interest in Pakistan and rest of the region, following disappointments that are growing for Arab and Muslim investors in the wake of Sept. 11, 2001."