Dow Jones and Reuters have some updated news on Kuwaiti telecom operator Zain's ongoing acquisition discussions to a Indian-led consortium.

Kuwait's Kharafi Group and a consortium led by India's Vavasi Group have named their advisers in the deal, momentarily sending Zain's stock by about 8 per cent to 1,080 Kuwaiti fils (Dh13.868). Kharafi retains BNP Paribas while Vavasi has hired Japanese bank Nomura.

"We have received an official letter from Nomura that it was appointed as lead financial adviser for Vavasi and other parties for the Zain deal," Kharafi told Reuters. "Talks for the Zain sale are still ongoing. We are talking with Vavasi as the leader of the consortium."

However, despite the announcement, investors played down the rally by the end of the day as Zain closed today's session back to its opening price of 1 Kuwaiti dinar or 1,000 fils.

What's important to note here is that Zain's closing price remains at a 50 per cent discount to what the Vavasi-led group is trying to acquire the telecom firm. Kharafi wants to sell its 46 per cent stake in Zain for 2 dinars, or about $13.7 billion (Dh50.3bn). So, judging by the market, investors still remain unconvinced - or at the very least, cautious - that this deal will not happen.

They may be on to something. India's junior telecom minister announced in parliament that state-run operators Bharat Sanchar Nigam and Mahanagar Telephone Nigam will not be part of the Vavasi-led consortium on Monday. Aside from the adviser announcement, Vavasi has not commented on the minister's comments or provided an update to how discussions have been going.

(Photo credit: Andrew Henderson / The National)