The Egyptian Financial Supervisory Authority (EFSA) accepted France Telecom’s offer to purchase all shares of the Egyptian Company for Mobile Phone Services (Mobinil). Orascom Telecom objected to the decision, arguing that the EFSA previously declined three offers from the French company.
Meanwhile, a government source said the Egyptian government asked France Telecom to guarantee that Orascom Telecom will be replaced by another local partner if the partnership is dissolved. The source, which spoke on condition of anonymity, said the Egyptian government must approve of any new partner, as communications is an issue related to national security.
French Telecom insisted its latest offer is generous. Orascom countered that this offer is no better than the previous three offers.
Orascom Telecom and France Telecom have had several disputes in the past. The parties took an ownership dispute to the court of arbitration in 2007, where the court ruled that French Telecom should pay LE273 per share. However, the EFSA approved the sale of Mobinil’s shares to France Telecom at LE245 per share.
Orascom Telecom has dismissed the justifications offered by the GAFS in its latest decision and reiterated that it is studying all the relevant legal aspects of the case.
Translated from the Arabic Edition.