Egypt Rejects France Telecom Bid For Mobinil

Orascom, backed by the CMA, had said the arbitration court ruling in March meant FT must submit a mandatory purchase offer for all of ECMS, which is Mobinil's operator. It said this also meant FT must pay the same price — 273 Egyptian pounds per share — for all the shares, including Orascom's minority stake in ECMS. That put the deal at $1.7 billion.

France Telecom initially disputed the assessment, and later submitted an offer for the entire company but at a lower price. That bid was rejected by the CMA.

In a statement issued after the CMA's latest decision, France Telecom said it would "use all national and international legal channels to challenge obstructive rulings by the Egyptian market authorities."

"In these circumstances, France Telecom is no longer able to pursue its proposed tender offer for ECMS shares," the company said. It also said that since it did not receive Mobinil securities held by Orascom by the April 10 date set by the arbitration, OT must pay France Telecom a fine of $50,000 per day until the transfer of the securities."

Orascom officials could not be reached for comment.