Saudi Telecom Company (STC) remains a blue chip company, Calyon International Bank said in its latest report on the telephone company's performance. The bank said that based on the company's growth, it indicated that the fair share price for STC should be at SR87, representing a 24 percent increase on the actual price. “This indicates that the purchase of STC's current stock is a viable investment,” the report said. The report further said that the recently concluded deals and acquisitions by STC generated strong interest among leading financial institutions which resulted in the publication of positive economic reports highlighting the compnay's strong market position and future outlook. In 2007 the company also embarked on a program of strategic investments outside the Kingdom. STC acquired 25 percent of Maxis in Malaysia, 51 percent of NTS in Indonesia, won the third mobile license in Kuwait, and purchased 35 percent of Oger Telecom. The overseas acquisitions demonstrated STC's presence in the Gulf, South East Asia, South Africa and Europe, “fulfilling one of its strategic objectives of expanding into high-growth emerging markets not only to diversify revenues but also to generate sustainable long-term growth. STC's recent developments showed a direct effect in the increase of operational revenues for 2007, which grew 6 percent as against the previous year. Dividends distributed on a quarterly basis amounted to SR5 per share in 2007 notwithstanding the company's external expansion strategy. Calyon Bank is one of the leading global financial institutions and the largest in Europe. __
