Egypt Rejects France Telecom Bid For Mobinil

TAREK EL-TABLAWY

CAIRO (AP) — Egypt's market regulator has rejected France Telecom's bid to buy outstanding shares of mobile phone service provider Mobinil, saying the purchase offer was unfair to the various shareholders.

The decision by the Capital Market Authority, posted Wednesday on its Web site, marked the second time the regulatory body had rejected the Paris-based company's offer in a drawn-out dispute with Egyptian telecom giant, Orascom Telecom over Mobinil, Egypt's largest cell phone service provider by subscriptions.

The CMA said that after reviewing the bid submitted by FT unit Orange Participations, it found that the offer "was in violation of the principles of affording equal opportunities" to shareholders.

FT and OT have been at odds over Mobinil since an arbitration court ruled in France Telecom's favor, requiring Orascom to transfer its shares in Mobinil Telecom, a holding company which holds a 51 percent stake in the Egyptian Company for Mobile Services. FT owns 71.25 percent of Mobinil Telecom while Orascom holds the remaining 28.75 percent. Orascom holds a direct 20 percent stake in ECMS while the remaining 29 percent is divided among other shareholders.