Arabtec cut to 'equal weight' by Morgan Stanley

Dubai-based Arabtec Holding has been cut to “equal-weight” from “overweight” and has had its price estimate removed by Morgan Stanley.

“The outcome of the Aabar transaction limits our ability to have an active view,” analyst Muneeba Kayani wrote in a note to investors today.

On February 28, Arabtec said it had agreed to extend the due diligence process for Aabar's purchase of a stake in Arabtec. Aabar has offered to buy 70% of Arabtec through the purchase of mandatory convertible bonds.

Arabtec Holding CEO Tom Barry told Construction Week that he would "not like to comment until the issue has been resolved."