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Egypt stocks shed 1pct as Altimo's OT offer is cancelled In the wake of the Egyptian financial regulator rejecting a Russian telecom buy out bid of Orascom Telecom, the market dips and OT shares suffer
Egypt's stocks started the trading week down Sunday as the Russia telecommunication giant Altimo cancelled plans to buy out minority shareholders in Egypt's Orascom Telecom (OT). Earlier Sunday, the Egyptian financial regulator (EFSA) rejected Altimo's attempt to reopen its earlier tender. Altimo launched an offer in April to buy out minority shareholders of Orascom, which has mobile businesses in Canada, Algeria, Pakistan and other emerging markets such as Bangladesh, in a deal worth an estimated $1.8 billion. But Altimo failed last week to secure sufficient acceptances from minority shareholders in Orascom by a Monday deadline after only 15.9 percent of shareholders of Orascom Telecom shares listed on the Egyptian Stock Exchange offered to sell — below the minimum 26.6 percent required for the buy-out to go ahead. OT plunged 5.6 percent in a session that saw the main index, the EGX30, decline 1.1 percent, recording 5,374 points. The broader index, the EGX70, also went down 0.4 percent as domestic investors ended Sunday's trading net-sellers with some LE10.9 million. Egypt's biggest investment bank, EFG-Hermes, hit a whopping rise of two percent as it announced share dividends after increasing its nominal capital by LE477.9 million. The market's bellwethers Orascom Construction Industries and Commercial International Bank fell 0.8 percent and 0.3 percent respectively. Property shares Palm Hills Development and Six of October Development and Investment Company slipped 0.9 per each. Listed securities witnessed LE234.2 million in daily turnover. http://english.ahram.org.eg/News/72982.aspx
