South African telecoms operator MTN Group is set to disappoint lenders as talks for a $5 billion loan to buy the assets of Egyptian telecoms firm Orascom Telecom (ORTE) fizzle out, banking sources said.
As previously reported, MTN has been discussing a $5 billion loan to buy some or all of the assets of Orascom Telecom , but bankers now say that talks are ending.
"The MTN deal has gone away, but obviously the assets are still for sale, so we might see some other operator come in and do something," one of the sources said.
It is the second time in eight months that MTN has disappointed M&A-starved lenders, having pulled out of merger talks with India’s Bharti Airtel last year.
MTN had lined up a $4.5 billion loan to back the Bharti deal but talks were aborted in September 2009.
MTN was not immediately available to comment.
