UPDATE 3-Zain seeks vote on ownesrship restriction change

* Zain seeks vote to remove some ownership restrictions

* Move would pave the way for selling large stake (Adds analyst comment)

KUWAIT Aug 16 (Reuters) - Kuwait's largest mobile telephone firm Zain (ZAIN.KW) said on Sunday it would ask shareholders to vote on removing certain ownership restrictions, a move that would pave the way for selling a large stake.

Last week, al-Rai newspaper, citing unidentified sources, said that Zain's largest shareholders were in talks with a major Asian telecoms group to sell more than 40 percent of the firm. [ID:nL9699246]

Zain wants shareholders to vote on cancelling an article of company regulations that prevents any investor from subscribing for more than 1,000 shares, or holding more than 2 percent of the firm's capital, the company said in an invitation to shareholders published in a local newspaper on Sunday.

The proposed change, subject to a vote on Aug. 31, would also allow local shareholder firms to own stakes higher than 5 percent.

"There could be serious steps for a major investor (to buy into Zain)," said Naser al-Nafisi, general manager at Al Joman Center for Economic consultancy in Kuwait.

Zain's spokesman Ibrahim Adel declined to comment on Sunday, on the reasons behind the proposed changes.

Zain's shares surged more than 3 percent after the firm said it would hold an extra-ordinary shareholder meeting, as there was speculation in the market that the meeting could prepare for a possible stake sale to a foreign firm.

Zain has been in the news in recent weeks after it said it is still reviewing a possible sale of its African operations -- excluding Morocco and Sudan -- after French media and telecoms conglomerate Vivendi (VIV.PA) broke off talks on buying the operations.

Shares of Zain were up 6 percent at 0753 GMT on Sunday. (Reporting by Eman Goma; Editing by Inal Ersan)