Deyaar denies merger rumours

The Dubai-based developer Deyaar has moved to play down increasing speculation that the company is in merger talks.

“The company's board is not currently engaged in any merger talks with any firm,” said the company in a statement released on Wednesday.

Earlier in the day, the daily al-Khaleej newspaper had cited an unsourced report that claimed Deyaar and Union Properties, another Dubai developer, had scrapped merger plans based on lack of financing.

"I don't think a merger would improve their financial positions," Julian Bruce, EFG-Hermes director of institutional sales told Reuters. "Right now, getting finance for anybody is more difficult after the Dubai debt crisis.”