Etisalat Could Obtain Only 40% of Zain

Reuters reports that Etisalat may have to settle for a stake of 40% in Zain, lower than it initially planned. The UAE telco originally offered to buy 46% of the Kuwaiti company for USD12 billion, which when combined with treasury shares owned by Zain would have given Etisalat a controlling 51% stake. However, sources close to the deal say that opposition among some of Zain’s shareholders means that Etisalat will be able to secure only a 40% stake. Legal action had threatened to delay the transaction or potentially scupper it. Etisalat was on the record as saying that any deal could fail if definitive documents are not signed by 15 January 2011.