EFG Hermes faces its own Arab Spring

It has been a difficult 12 months for EFG-Hermes, the leading Middle East investment bank, which now finds itself in the teeth of a financial storm as the subject of an unwanted takeover battle.

The Cairo-based bank, founded in 1984, has seen its market value drop steeply since the turmoil of last year's uprising in Egypt. Its shares have lost more than a third of their value in the past year, giving it a market capitalisation of $850 million (Dh3.1 billion).

A further shadow has been cast over the bank by its association with Jamal Mubarak, son of the ousted Egyptian president who owned a stake in its private equity business.

Last week EFG’s two co-chief executives, Hassan Heikal and Yasser Al Mallawany, were charged with insider trading alongside Jamal Mubarak and his brother Ala’a.