National Bank of Egypt's investment banking arm, Al Ahly Capital, said on Monday it had dropped its bid to buy CIB subsidiary CI Capital after failing to agree on a timeframe to complete feasibility studies. "Al Ahly Capital has decided not to resume procedures for its acquisition bid and hopes that CIB achieves its goals in the interests of its stakeholders," it said in a statement. Yesterday, prior to this announcement, Al Ahly Capital had submitted a non-binding offer to buy 100% of CI Capital for EGP1 billion. CI Capital had already accepted a EGP1 billion offer from Orascom Telecom and Technology (OTMT), which is currently conducting due diligence on CI Capital. The deal is subject to final negotiations between the two parties, the results of due diligence as well as all necessary regulatory approvals. According to CIB’s financial statements, the investment book value of CI-Capital stood at EGP428 million as of September 2015. This would imply a gross capital gain of EGP572 million, and a net capital gain (assuming 22.5% corporate income tax) of EGP440 million. This represents c11% of our estimate for CIB’s net income after profit sharing of EGP4,078 million in FY2015. The loss of income for CIB as a result of selling CI-Capital would not be significant as it contributes to 1-2% to CIB’s bottom-line. (Reuters, Elena Sanchez-Cabezudo, CFA)   CIB: EGP34.47 as of 08 February 2016, Rating: Buy, FV: EGP44.43 per share, MCap: USD5,050 million, COMI EY / COMI.CA