Court Blocks Bid To
Acquire Egypt’s Mobinil
A
court in Egypt has halted France Telecom's bid to take control
of Egypt's biggest mobile firm Mobinil.
Egypt's Orascom Telecom had appealed to the court against a
decision by the regulator in December to allow France Telecom to
go ahead with its share offer, which could cost the French firm
$2.9 billion if all shareholders agree to sell.
When the verdict was announced, crowds of people including
Orascom executives cheered and applauded the Egyptian company's
victory.
Speaking after the hearing, Orascom Executive Chairman Naguib
Sawiris said, ’’We are in our country, staying in it. We are not
leaving.’’
France Telecom said in a statement that it regretted the
decision and would seek to have the tender offer reinstated. It
also said the next hearing would be on February 13.
The fight between France Telecom and Orascom is for control of
Egyptian Company for Mobile Services (ECMS), which markets its
offers under the brand name Mobinil.
In December, the Egypt's stock market regulator, the Egyptian
Financial Supervisory Authority (EFSA), decided to allow France
Telecom to buy out Orascom's shares in ECMS, as well as other
minority shareholders in a tender offer that was supposed to
close on Friday.
The French group owns about 36.4 percent of ECMS, Egypt's
biggest mobile operator by subscriber numbers, while Orascom
owns about 34.6 percent.
Lengthy procedures
Mike Millar, regional director of research of Naeem Holding,
said the ruling could result in lengthy legal proceedings.
Orascom said France Telecom should have offered 273 pounds a
share, equivalent to a price set by a court in April for shares
held indirectly by Orascom through a holding company, Mobinil
Telecommunications, which owns 51 percent of the mobile firm.
Analysts said the next move may indeed be an offer by France
Telecom to increase the price it is willing to pay for the ECMS
shares.
REUTERS/YINKA
