Wednesday, 29 June 2011

Failure of Etisalat's $12bn Zain bid hits forecasts: Plugged in

Nomura has lowered its price targets for regional telecoms firms Etisalat and Zain, following the breakdown in the UAE company's $12 billion bid for the Kuwaiti operator.

The firm reduced its share-price target for Etisalat to Dh12.1 from Dh13.6. "[The] failure to cement Zain bid, increasing domestic pressures domestically and problems in India all weigh on [the] investment case," it said.

It also reduced its price target for Zain to 1.04 Kuwaiti dinars from 1.22. It attributed this to a special dividend paid by the company, adding that the business is "self sustaining but [its] strategic direction [is] unclear."


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