Bahrain Telecommunications (Batelco) says that it is amassing a war-chest of US$4 billion for foreign acquisitions as it faces increased competition in its home market. The company expects to borrow up to US$1.5 billion and the remainder though share issues.
Chief Executive Officer Peter Kaliaropoulos told reporters that he is seeking to make fewer large acquisitions as opposed to picking up stakes in smaller firms. The company has also bid "several hundred million dollars" for Qatar's second mobile phone license. The company is considering investments in Lebanon, Oman and Syria. The Lebanese government is due to sell stakes in its two mobile operators early next year.
Batelco recently lost its mobile monopoly within Bahrain, but still retains its monopoly over land-line services. However, the company has been under pressure from the telecoms regulator to lower access costs and retail prices.
Posted to the site on 29th October 2007
Posted to: www.cellular-news.com/story/27028.php