|By TAP Staff| Saudi Arabia’s bourse regulator on Tuesday suspended share trading in the shares of Mobily and Zain Saudi after a bitter money dispute between the two telecom operators snowballed into a major controversy.
The decision by the Capital Market Authority follows a Mobily statement that it had asked for arbitration about money it claims it is owed by smaller rival Zain Saudi.
Trading in the two companies will be suspended on Tuesday only, the CMA statement added.
Zain Saudi, Saudi Arabia’s No.3 telecom operator, said on Tuesday that a 2.2 billion riyals ($586.28 million) claim from Mobily was unfounded after its larger rival sought arbitration for this amount, plus damages.
The dispute relates to a 2008 services greement between the operators.
Zain Saudi later issued its own statement in which it said Mobily’s claim for 2.2 billion riyals was unfounded and Zain Saudi owed Mobily only 13 million riyals. Zain Saudi added that Mobily was also seeking 58.7 million riyals in damages.
