A group of investors linked to local tycoon Syed Mokhtar Al-Bukhary and mainly from the Middle East are believed to be eyeing a controlling stake in Bank Muamalat, an Islamic bank in Malaysia, a report said today.

The Edge business newspaper said the group had sent out feelers to state-owned fund Khazanah Nasional Bhd with the view of acquiring its 70 percent stake in the Islamic bank.

It quoted a source as saying: "... the group has expressed interest and Khazanah will sell if the price is right."