CAIRO, (Reuters) – Egypt’s market regulator has rejected France Telecom’s bid for the outstanding shares in Mobinil, the centre of a dispute with other main shareholder Orascom Telecom, three traders said on Wednesday.
“The CMA has rejected (France Telecom’s offer),” said Ashraf Akhnoukh, senior equities trader at CIBC Brokerage. “It means in the short term the stock (Orascom) gets hit. It’s actually getting hit right now. Mobinil (faces) the same thing.”
The traders said a statement from the Capital Markets Authority rejected the bid and allowed the resumption of trade in Mobinil and Orascom, which is locked in a dispute with FT over ownership of the Egyptian mobile firm.