Orascom discontinues legal proceedings against France Telecom

6 Jul 2009

Egyptian telecom group Orascom Telecom has announced that it is halting legal action in the North Cairo Economic Court against France Telecom (FT) related to the dispute between the two companies over the ownership of Egyptian Company for Mobile Services (MobiNil), the Financial Times is reporting. The Egyptian company says that its action is prompted by recent ‘public pronouncements by FT, which make it clear that… (it) has no intention of extending a public tender offer on the same terms as those contained in the award (of the arbitration court) and is therefore not in a position to conclude the sale as mandated by the ruling of the Capital Market Authority issued on 7 April 2009.’ The action, however, looks unlikely to resolve the matter, with FT responding by stating: ‘Orascom has yet to comply with the international arbitration award obliging it to sell its stake in the MobiNil holding company to France Telecom and therefore nothing of substance in this matter has changed.’