CAIRO: Egypt’s Orascom Telecom (OT) chairman on Thursday ruled out Russia’s Vimpelcom succeeding in talks over dispute with the Algerian government over its Djezzy unit.
The long-running dispute over Djezzy, OT’s biggest single source of revenue, has complicated a $6 billion-plus deal for Vimpelcom to take control of OT and its parent Wind Telecom.
Vimpelcom’s shareholders last month approved the takeover, which is expected to close by May.
"I do not think Vimpelcom will succeed in negotiations in Algeria," Orascom Telecom’s Chairman Naguib Sawiris said in a shareholders meeting on Thursday.
Orascom Telecom’s Chief Executive Khaled Bichara told the meeting if Vimpelcom negotiations did not succeed, Orascom would seek international arbitration.
Sawiris said on April 4 his firm had made no progress in the dispute with the Algerian government and will bring the matter to international arbitration if it is not resolved.
OT shareholders approved on Thursday a split of the company and a capital increase.
OT would boost its issued capital to LE 14 billion ($2.35 billion) up from 7.5 billion to fund its debt as well as divide the company into two.
Both firms will be listed on the Egyptian stock exchange.
