South Korea’s second largest mobile phone carrier by subscribers KT Corp has dropped its bid for Vivendi’s 53% share in Morocco’s Maroc Telecom, which is valued at around USD6 billion. However, the company has announced it might consider various investment options instead. KT Corp, in its first major foray overseas, submitted a preliminary non-binding bid for Maroc Telecom in December 2012. At the time the company said it was planning to share up to 40% of the stake with local partners to help mitigate risk and to finance the bid.
According to TeleGeography’s GlobalComms Database, two potential bidders are now left in the running for the telecom, namely Qatar Telecom (Ooreedo) and the UAE’s Etisalat, although Saudi Telecom Company (STC) is still mentioned in some reports as being interested in the auction. Dubai-based Etisalat has already secured an USD8 billion dual-tranche loan to finance its bid. Since Maroc Telecom is 30% owned by the state, the Moroccan government will have the final say in Vivendi’s eventual choice of buyer.