Tuesday, Mar 06, 2012

--Aabar hikes stake in Arabtec to 5.28% - DFM filing

--Increased interest may open more Abu Dhabi opportunities for Arabtec

--Arabtec says Aabar stake hike was done in the open market; not aware of any "grander scale interest"

--Analysts see Aabar further increasing stake, but say current price too high

--Arabtec shares seen pressured near term on valuation concerns

(Recasts lede, adds analyst comments, background throughout.)

By Nikhil Lohade and Tahani Karrar-Lewsley

Of ZAWYA DOW JONES

DUBAI (Zawya Dow Jones)--Arabtec Holding is likely to benefit from Aabar Investments' increased interest in the Dubai-based construction company as it eyes expansion in the U.A.E. capital, and may well explain a sharp spike in its stock price, analysts say.

Abu Dhabi-based Aabar, formerly known as Aabar Petroleum Investments Co., has raised its stake in Arabtec to 5.28%, according to a filing on the Dubai bourse website.

06-03-12 1243GMT