CAIRO: Shares in existing Egyptian mobile phone operators jumped sharply on Tuesday on reports of higher bids than expected for the country s third mobile license.
Mobinil shares surged 31 percent to LE 170 pounds as news leaked out from the site of an auction for the license. Vodafone Egypt, the other existing operator, rose about 13 percent to LE 94.
Etisalat won the bid, offering LE 16.7 billion.
Brokers said the increase was based on calculations that Mobinil and Vodafone must be more valuable than thought if companies are willing to pay so much for the license.
A high price for the license, especially from a foreign bidder, would also inject large amounts of money into the Egyptian economy and increase bank credit, said broker Mohamed Kotb of Gezira Asset Management. Reuters
