Zain rejects Vivendi offer (Re-post)

According to Al-Qabas Kuwaiti daily newspaper, Zain has formally rejected an offer from Vivendi to buy a majority stake in Zain Africa. The offer was rumored to be $10.5B for a 65% stake. The reason for the rejection is rumored to be the payment mechanism proposed by Vivendi. I guess Zain wants cash now, while Vivendi can only pay in installments because it promised to maintain its BBB rating and deliver dividends of at least 50% of its adjusted Net Income. For more insight on Vivendi’s financing options, kindly refer to my comments on Oikonomia’s recent post, “Zain-Vivendi Deal: Mission Impossible”.