Orascom drops lawsuit against FT

Jul 05, 2009 at 12:41

Egyptian telecom to halt legal proceedings against France Telecom in share ownership dispute over Mobinil.

Egypt's Orascom Telecom (OT) said on Sunday it would discontinue legal proceedings in an Egyptian court against France Telecom in a dispute over shared ownership of mobile operator Mobinil.

The move, described in a statement by OT as an "amicable gesture" to focus attention on running Mobinil, is the latest in an acrimonious battle over Mobinil that has involved court arbitration and interventions by Egypt's market regulator, the Capital Markets Authority (CMA).

OT in May filed an appeal requesting that a sale of shares in Mobinil be rescinded because France Telecom had not met conditions for the deal.

In its statement, OT said the legal proceedings "are no longer necessary in light of recent public pronouncements by FT, which make it clear ... FT has no intention of extending a public tender offer on the same terms as those contained in the Award".

FT was therefore, "not in a position to conclude the sale as mandated by the ruling of the CMA".

"OT has reserved all its rights, including its claim for damages, but hopes that further litigation can be avoided." Shares in Mobinil were trading 0.9 percent lower by 0819 GMT on Sunday.