Saudi investor could take MTC stake September

Newspaper says a Saudi investor is likely to take a stake of at least 10% in Kuwait's MTC.

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By  Reuters Published  July 28, 2007

An investor from Saudi Arabia would likely take a stake of at least 10 % in Kuwait's Mobile Telecommunications Co. (MTC) in September, a Kuwaiti newspaper reported on Saturday.

Shares of MTC, the second-largest Arab telecom firm by market value, are up more than 90 % this year, partly driven by rumours that a regional investor would buy a stake in the firm at a premium to its share price.

MTC officials have repeatedly declined to comment on the rumours, saying that any stake sale was a shareholder issue.

The Saudi partner, which al-Qabas daily did not name, would not buy less than 10 %, the paper reported, without saying how it obtained the information.

The deal is close to being finalised after months of preparation, the paper added.

In June, al-Seyassah daily had reported that talks with a Saudi investor to buy 10 % of MTC and 25 % of its Celtel unit in Africa had been put off until November because of a disagreement over price.

In March, MTC, Kuwait's largest mobile phone firm, led a consortium that won Saudi Arabia's third mobile phone licence with the highest offer of $6.11 billion.

Shares of MTC fell 0.93 % on Saturday.

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