Family of Osama bin Laden cutting ties with Carlyle Group
By MARCY GORDON, Associated Press
WASHINGTON (October 26, 2001 3:47 p.m. EDT) - Osama bin Laden's wealthy
family in Saudi Arabia is severing its financial ties with the Carlyle Group, a
politically-connected U.S. private investment firm, by mutual agreement, a source
familiar with the relationship said Friday.
The bin Laden family decided to sell its investment worth $2.02 million back to the
firm mainly because of public controversy over its stake in a Carlyle fund that
invests in buyouts of military and aerospace companies, said the source, who
spoke on condition of anonymity. The source was confirming a report in Friday's
editions of The New York Times.
There had been criticism in Saudi Arabia after the Sept. 11 terror attacks that the
family, which disowned exiled Islamic militant Osama bin Laden years ago, might
profit from increased military spending in the U.S. war against terrorism.
The family, whose construction company is one of the largest in the Middle East,
also has invested with a number of other investment funds and financial
institutions around the world, reportedly including U.S. financial services giant
Citigroup, Deutsche Bank of Germany and the Dutch bank ABN Amro.
Carlyle has some $14 billion in assets under management. Its chairman is Frank
Carlucci, a former U.S. defense secretary. Former President George Bush, former
secretary of state James Baker and Arthur Levitt, who had been chairman of the
Securities and Exchange Commission through most of the Clinton administration,
are senior advisers to the firm.
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