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Etisalat drops $12bn bid for Zain
21 March 2011
Etisalat has abandoned its plan to buy Zain because of regional unrest and resistance from some Zain board members
Etisalat has discarded its $12 billion offer for a large stake
in Kuwaiti operator Zain. The deal fell through due to the
results of Etisalat’s due diligence process, a
lack of unanimity among Zain board members and political unrest
in the region.
The takeover would have given Etisalat access to new markets in
the region, including Iraq, Kuwait and Morocco.
Etisalat — based in Abu Dhabi and officially called
Emirates Telecommunications — launched its original
offer worth about $11.7 billion for a 46% stake in Zain in
September 2010. The company missed its first self-imposed due
diligence deadline of January 15 2011 and its second due
diligence deadline expired at the end of February.
Zain is 24.6%-owned by Kuwait Investment Authority and majority
owned by Al-Khair National Stocks and Real Estate Company.
Last week, it accepted a $950 million offer to sell its Saudi
business to Prince Alwaleed bin Talal’s Kingdom
Holding and Batelco Group. In 2010 Zain sold its sub-Saharan
African operations to Bharti Airtel for $10.7 billion.