Arab Sheikh Sues UBS Over Verbal 'Recruitment' Contract

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A Kuwaiti sheikh is suing UBS for $21.4m, alleging the bank failed to pay him for helping it become lead arranger on a $9bn asset sale by the Kuwaiti telecommunications operator Zain, a Dubai court heard on Sunday.

Reuters reports that the case highlights the complexity of doing business in the Gulf, where personal connections to high-ranking officials or executives are often valued in deal-making.

Sheikh Meshal Jarah al-Sabah, a member of Kuwait's ruling family, says UBS recruited him with a verbal contract in July 2009 to help scupper the French media conglomerate Vivendi's bid to acquire Zain's operations in about 15 African countries.

Vivendi called off the talks later that month. India's Bharti Airtel subsequently bought Zain's African assets for $9bn in 2010; UBS advised Zain on the deal.

UBS has said: 'This matter is before the DIFC Court. UBS denies these allegations categorically and is defending this position'.

Hit the link below to access the complete Reuters article:

Kuwait sheikh sues UBS for $21.4 mln in Dubai court

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