Egypt's Competition Authority (ECA) has said that it will study a request filed by Telecom Egypt claiming the right of preemption over the potential sale of a majority-share of Vodafone Egypt to the Saudi Telecom Company (STC), after Vodafone International signed an MoU with STC to sell 55 percent of the company's shares. "The ECA received a request from [Telecom] and is willing to undertake the necessary legal action according to the competition law and its executive regulations," the CPA said. Recent reports said that Telecom Egypt, the largest fixed-line operator in Africa and the Middle East, may resort to the right of preemption in the purchase by Saudi Telecom of about 55 percent of the shares of Vodafone Egypt. The Saudi Telecom Company signed last month a memorandum of understanding with Vodafone International to buy 55 percent of the shares of its subsidiary, Vodafone Egypt, with an initial value of $2.392 billion. Telecom Egypt owns 45 percent of Vodafone Egypt's shares.
