The Qatari bid to gain 27% of the Société Bains de Mer group (SBM) in Monaco has lost momentum, after the state shareholders have held fast to their assets in a tense meeting on Monday. The billion-dollar Qatari sovereign investment fund, Diar, had launched a public acquisition offer (OPA) on the Paris bourse to boost its minority 2.45% stake in the Monaco state holding company.

Following the meeting on Monday between delegates of the two parties, the SBM have affirmed that they intend to retain their shares and that the Diar should consider limiting their bid to a mere 10% of the capital. It is reported that the Qataris are unhappy with the suggestion and do not wish to limit their offer further.

Commenting on the move by the Diar, Minister of State Jean Paul Proust affirmed that there was no question of the state ceding its controlling 69.6 percent of SBM ("It doesn’t need the money") nor of Prince Albert II selling his shares, which left only the 26 to 27 % currently owned by European and American pension funds in play.

He added that a Diar minority partner – unlike the pension funds – might offer synergies in future between the tiny Arab emirate and SBM international expansion intentions in luxury tourism. The emirate, he feels, is buying into the Monaco dream: "I believe Diar is interested in the Monaco image." Diar already has investments in the Magreb, the Middle East, London and Paris.