The Egyptian Financial Supervisory Authority said Monday it has given Orascom Telecom Holding (ORTE.CI) a week to disclose more details of its deal with France Telecom (FTE) ending a dispute over the ownership of Egyptian Co. for Mobile Services (EMOB.CI), or ECMS. France Telecom and Egypt's Orascom Telecom said April 15 they had reached a settlement over the ownership of ECMS, brokered by the Egyptian government. It ends a long-running and complicated legal dispute in the Egyptian courts and international arbitration. The Egyptian regulator said Orascom Telecom now has no more than a week to clarify the disclosure sent April 27, adding it welcomed efforts to resolve the dispute. Orascom could face sanctions if it doesn't respond, an official from EFSA told Dow Jones Newswires. "If Orascom didn't get back to the regulator in a week there will be a sanctions committee which will decide what action to take," Yasser Batran said. "Orascom can reply to some of the points and not the others in this case the committee will decide on the sanction. It could be anything from stopping trading on the stock to other measures," he added. According to the agreement, the ownership of ECMS, also known as Mobinil, won't be changed. ECMS is 51% owned by a holding company also called Mobinil, which in turn is 71.25% owned by France Telecom and 28.75% owned by Orascom Telecom. Orascom Telecom also has a direct 20% stake in ECMS and 29% of ECMS is free float. France Telecom last week paid Orascom Telecom Holding a global settlement fee of $300 million as part of the agreement. Regulator EFSA said it wants to know how the $300 million settlement was evaluated and if any part of this settlement will affect ECMS. EFSA also said it wants Orascom Telecom to clarify the impact of the deal on the management and the voting rights of Orascom Telecom and France Telecom for Mobinil Telecom and ECMS. The regulator said it is giving minority shareholders one week to express their opinion and concerns regarding the elements of the deal. Once Orascom and France Telecom reach a settlement, EFSA said won't appeal the court verdict which blocked its decision approve France Telecom's offer to buy ECMS at EGP245 a share. It said it was keen to protect its previous decisions, but if the two parties have reached a settlement it would give up its right to appeal the court's decision. According to the terms of the final agreement submitted to the Egyptian market regulator last week, ECMS will acquire Internet providerLINKdotNET and Link Egypt for $130 million, subject to the approval of authorities. The regulator said this acquisition should abide by the relevant laws and listing and disclosure rules.
