Egypt, S.Arabia step up trade ties through coordination council talks    Egypt reviews progress on $200m World Bank-funded waste management hub    Egypt urges Israel to accept Gaza deal amid intensifying fighting    SCZONE showcases investment opportunities to eight Japanese companies    Egypt, ADIB explore strategic partnership in digital healthcare, investment    SCZONE, Tokyo Metropolitan Government sign MoU on green hydrogen cooperation    Egypt welcomes international efforts for peace in Ukraine    Al-Sisi, Macron reaffirm strategic partnership, coordinate on Gaza crisis    Contact Reports Strong 1H-2025 on Financing, Insurance Gains    Egypt, India's BDR Group in talks to establish biologics, cancer drug facility    AUC graduates first cohort of film industry business certificate    Egyptian pound down vs. US dollar at Monday's close – CBE    Egypt's FM, Palestinian PM visit Rafah crossing to review Gaza aid    Egypt prepares unified stance ahead of COP30 in Brazil    Egypt recovers collection of ancient artefacts from Netherlands    Egypt harvests 315,000 cubic metres of rainwater in Sinai as part of flash flood protection measures    Egypt, Namibia explore closer pharmaceutical cooperation    Fitch Ratings: ASEAN Islamic finance set to surpass $1t by 2026-end    Renowned Egyptian novelist Sonallah Ibrahim dies at 88    Egyptian, Ugandan Presidents open business forum to boost trade    Al-Sisi says any party thinking Egypt will neglect water rights is 'completely mistaken'    Egypt's Sisi warns against unilateral Nile measures, reaffirms Egypt's water security stance    Egypt's Sisi, Uganda's Museveni discuss boosting ties    Egypt, Huawei explore healthcare digital transformation cooperation    Egypt's Sisi, Sudan's Idris discuss strategic ties, stability    Egypt to inaugurate Grand Egyptian Museum on 1 November    Greco-Roman rock-cut tombs unearthed in Egypt's Aswan    Egypt reveals heritage e-training portal    Sisi launches new support initiative for families of war, terrorism victims    Egypt expands e-ticketing to 110 heritage sites, adds self-service kiosks at Saqqara    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



MTN says Orascom tie-up talks collapse

JOHANNESBURG/CAIRO: South Africa's MTN Group said it ended talks with Egypt's Orascom Telecom about a potential acquisition, sinking a deal that could have created the world's third-largest mobile operator.
Africa's top mobile phone service provider and Orascom began talks in late April but were opposed by Algeria's government, which wants to buy Orascom's unit in that country for itself.
Analysts have said that without the money-spinning Algerian unit, Djezzy, the deal would have little meaning for MTN, which is desperate to expand and needs a foothold in North Africa.
The failure highlights the political and regulatory risks facing potential deals in emerging markets where mergers and acquisitions of telecoms are at an all-time high.
MTN which needs to push beyond its key markets of South Africa, Nigeria and Iran, has failed to do a deal four times in the last three years.
Takeovers of emerging market telecom companies have soared with deals valued at $64.6 billion so far this year, according to Thomson Reuters data, more than a third higher than the previous record of $39.4 billion in the first six months of 2006.
MTN said in a statement on Wednesday that talks had been terminated. No one was immediately available for comment at MTN or Orascom.
Shares of MTN could benefit from the news, said David Lerche, a telecoms analyst at Johannesburg-based Avior Research.
"I do think the news is good because it removes uncertainty around acquisitions regarding the shares," he said.
"Part of the reason the share has performed badly recently is that people have been a bit concerned about what sort of multiples they will be paying for an acquisition."
Bad for orascom
The news would likely be seen as a negative for debt-laden Orascom, said Emr Elalfy, an analyst at Cairo-based investment bank CI Capital.
"Investors were expecting some kind of deal to come out," he said.
"I'm still of the opinion that Orascom Telecom is worth more in piecemeal than as a company right now, so I would not be surprised if (it) comes up with another deal that unlocks hidden value," he said.
MTN offered to pay $7.8 billion for the Algerian unit, Orascom's chairman told Reuters last week.
Orascom said late last month it would begin talks to sell the unit to the Algerian government, bowing to weeks of pressure from Algerian officials, who have said the state had the right to bid on the unit before a foreign buyer.
The Algerian unit has been Orascom's top earner, bringing in revenue of $412.5 million, or one-third of Orascom's total, in the first quarter of 2010.
But it has also brought plenty of trouble to the Egyptian company, due to Algeria's growing economic nationalism.
The Algerian government has slapped Djezzy with back taxes and penalties, and in November Algerian football supporters attacked Djezzy's headquarters following a football match with Egypt.
"For Orascom it simply means that it is business as usual, with the negotiations with the Algerian government the critical issue," Nomura analyst Martin Mabbutt said in an e-mailed statement.
Abu Dhabi's Etisalat, which had expressed interest in Djezzy, could be interested in buying the unit once Orascom resolves its issues with the Algerian government, said CI Capital's Elalfy. –Additional reporting by Victoria Howley in London


Clic here to read the story from its source.