CAIRO: An Egyptian appeal body upheld a regulator s rejection of France Telecom s third offer to buy outstanding Mobinil shares, the deputy head of the regulator said on Tuesday.
They have rejected the appeal and approved the Capital Markets decision, Khaled Serry Seyam, a deputy chairman of the Egyptian Financial Supervisory Authority told Reuters.
Seyam, whose EFSA superseded Egypt s Capital Markets Authority in July, could not immediately provide the reasoning behind the decision, taken by an independent appeal panel.
France Telecom was not immediately available for comment.
Mobinil, Egypt s largest mobile operator by subscribers, is caught in a dispute between its two main shareholders, Cairo-based regional operator Orascom Telecom and France Telecom, that has included court arbitration and regulator rulings.
The two heavyweights, who together own a controlling stake in Mobinil, have gone through years of arbitration resulting in a ruling that Orascom should sell its 28.75 percent stake in their joint holding company to France Telecom for LE 273 ($49). OT and Egypt s regulator have said this decision compels FT to make a similar offer for the remaining shares at an equivalent price, which FT disputes. OT also has a 20 percent direct stake in Mobinil.
Egypt s regulator has rejected previous FT bids for the outstanding Mobinil shares, saying all shareholders needed to be treated equally.
