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from Global Investing:
Nigerian banks were advertising their services on billboards in Terminal 5 last year, and travelling investors felt it showed the banks were rashly trying to keep up with international investment banks in aiming for a global profile, causing many to sell, a banker specialising in Africa told journalists this morning over breakfast.
"Those adverts were a sign to sell Nigerian banks," Luca del Conte, executive director in treasury and capital markets at Medicapital Bank said.
"We have about 100 institutional investors, and of 50 funds that we speak to actively, more than half mentioned this. Once capital markets started shaking, funds did not ask any more questions, they just sold."
Richard Branson’s Virgin group, one of the highest-profile investors in Nigeria, is locked in a dispute with the government about which airport terminal the Virgin Nigeria airline can use. At the heart of the row is an agreement Virgin says it struck with the previous administration of former President Olusegun Obasanjo, which the new government of President Umaru Yar’Adua is questioning.
Nigerian officials say past deals with international investors have not always been in the best interests of the country and that Yar’Adua wants to ensure Nigeria is no longer “short-changed”. Virgin has said it is in talks to sell its stake in Virgin Nigeria.