Iran Sells $7.8 Billion of State-Owned Phone Company Shares

Iran sold a majority stake in its state-owned telecommunications company to an investor group for about $7.8 billion in Tehran Stock Exchange’s largest-ever deal, the government-run Mehr news agency said.

The group, called Etemade Mobin, purchased 50 percent plus one share in Telecommunication Company of Iran, the news agency said. The value of each share in the company, which provides all the country’s landlines, was 3,400 rials (34 U.S. cents).

Iran is carrying out a plan to sell 80 percent of its major state-owned companies to boost the economy and stock values following a 2006 order by Supreme Leader Ayatollah Ali Khamenei, the country’s highest authority. At least three-quarters of the Iranian economy is controlled by the state.

Local analysts have criticized President Mahmoud Ahmadinejad, who was first elected in 2005 and started his second term in August, for failing to accelerate the privatization process. During his term, Iran has been placed under United Nations sanctions for its refusal to limit uranium enrichment activities as part of its nuclear program.END