France Telecom’s MobiNil bid appeal rejected

5 Aug 2009

A committee of three Egyptian judges has rejected France Telecom’s (FT’s) appeal against a ruling that declined its offer to purchase outstanding shares in mobile operator MobiNil, Bloomberg reports. Egypt’s Capital Market Authority (CMA) has so far rejected three offers from FT aimed at acquiring the stake it does not hold in MobiNil; the market regulator has claimed on all three occasions that the bid price from the French company was too low in comparison to the rate set by an arbitration ruling for the majority of the company. In its latest bid FT offered EGP237 (USD43.07) per share for the minority holdings in MobiNil, but the CMA said it must make an offer based on the EGP273.26 price set by the arbitration ruling in April 2009, or instead justify the reason for a lower offer. Despite the rejection of the appeal the matter appears far from over, however, as it is understood that FT now plans to challenge this latest decision in the Egyptian Supreme Court.