Wednesday 29 August 2012

DEALTALK-Wealth fund holds key to Qtel's $2.2 bln Kuwaiti bid | Reuters

As Qatar Telecom (Qtel) QTEL.QA dangles a $2.2 billion bait to persuade minority shareholders in its Kuwaiti unit Wataniya (NMTC.KW) to sell out, it knows one major investor is positioned to frustrate its goal of 100 percent control.

Step forward the Kuwait Investment Authority (KIA), the sovereign wealth fund whose 23.5 percent stake in Wataniya makes it the second biggest shareholder and puts it in prime position to decide the fate of Qtel's offer for the 47.5 percent it does not already own.

Qtel bought its controlling stake in 2007 but has now decided to seek full control, capitalising on Wataniya's weak share price and completing the takeover of a company with attractive growth prospects in emerging markets such as Algeria and Tunisia.

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