Etisalat denies foreign ownership rumour

Etisalat is keen to allow foreigners to buy stock in the company to generate funds for further expansion.

UAE operator Etisalat denied on Wednesday rumours that it was on the verge of allowing foreigners to buy its shares, which have rallied in price to near 26-month highs in the past week on the speculation.

"Etisalat today denied rumours that a change in legislation is to be announced soon allowing non-UAE nationals to own stocks in the company," the third-largest Gulf Arab telecom firm by market value said in a statement.

Foreigners are banned by law from owning Etisalat's shares.

Speculation that Etisalat would soon announce it had agreed to open its shares to foreign investors fuelled a rally in its stock, which jumped 6.47% on Wednesday to its highest since August 30, 2005.

The shares have surged almost 24% since October 17 on rumours a policy to open shares to foreigners was imminent, analysts, including Mohammed Yasin, managing director at Emirates Securities, have said.

The company had held talks with the government of the UAE, which owns about 60% of the company, to have the law changed, Etisalat said in the statement.

Its Chairman Mohammed Omran said in July the change would likely take place in six to 12 months.

"When this amendment is made, Etisalat will announce it to the public," Etisalat said.

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