Friday 14 January 2011

Etisalat likely to miss deadline for concluding US$12 billion Zain deal - bi-me.com

Emirates Telecommunications Corp. will probably miss the deadline for a final accord on its US$12 billion offer for control of Zain because it doesn’t have adequate commitments from shareholders of the Kuwaiti company, five people involved in the talks said.

The bid by Abu Dhabi-based Emirates Telecom, or Etisalat, to buy about 46% of Zain, will expire unless enough shareholders of Kuwait’s largest phone operator enter into a definitive agreement by January 15. Etisalat has commitments from Zain investors with about 40% of the company, three of the people said, declining to be identified because the talks are confidential.

Etisalat may extend the offer deadline, although the company’s bid could unravel altogether if it doesn’t get enough support from Zain shareholders or Zain fails to find a buyer for its stake in a Saudi Arabian unit, one of the people said.

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