Zain Sued for $4.5bn over Iraq Deal

By John Lee.

Reuters reports that mobile phone company Zain is being sued for $4.5 billion over its 2007 acquisition of Iraqi telecom operator Iraqna.

The company bought Iraqna for $1.2 billion from Egypt's Orascom Telecom after it dropped out of the running for a long-term mobile licence in Iraq.

According to Reuters, the Kuwaiti firm then merged its Iraqi unit, Atheer, with Iraqna and renamed the entity Zain Iraq.

Zain said that a company it declined to identify filed a lawsuit last August claiming that Zain’s takeover had stopped the firm buying Iraqna, causing it losses of $4.5 billion.

Zain Iraq said the claimant company has failed to produce any evidence to back its claim.

(Source: Reuters)

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