Etisalat eyes takeover of Pakistan’s Nayatel

ISLAMABAD - Telecoms operator Etisalat is holding takeover talks with internet provider Nayatel, one of Pakistan's fastest-growing companies. "They want to totally buy us out," Nayatel Chairman Rashid Khan told Reuters in an interview, adding that talks had slowed over the potential cost of a deal. "Ultimately it comes down to price," said Khan, adding that he also expects interest from Chinese and Norwegian companies.

No one from Etisalat was immediately available for comment. Gulf-based Etisalat, the Arab world's second-biggest telecoms firm, has faced tough competition at home after its monopoly was broken in 2007 by Dubai-based DU. Nayatel made its name by investing early in a fibre-optic network for direct connections to homes and businesses, to allow for heavier data downloads. The internet, telephone and cable TV service provider has paid-up capital of about $5.0 million. Annual sales among its 7,000 customers top $12 million, said Khan, with revenue growth of 40-50 percent a year.

This news article was published in Pakistan Today on 25th January 2011