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FINANCIAL NEWS
Telecom Egypt ends talks with Vodafone unit
02 Jun 2010
(MENAFN) Telecom Egypt ended talks to increase its 45 percent stake in Vodafone’s Egypt unit without a sale, the two companies said, narrowing the Egyptian landline monopoly’s mobile prospects.
Telecom Egypt, owned 80 percent by the Egyptian government, has been looking to raise its exposure in the competitive and growing market for mobile services, which have been eating into its fixed-line revenues.
The company first said it was considering boosting its stake in Vodafone Egypt last month. ‘The parties have agreed that it is in the best interest of VFE (Vodafone Egypt) that the current ownership structure should remain in place,’ Telecom Egypt and Vodafone said in a statement.
Egypt’s mobile market is dominated by Vodafone Egypt and Mobinil. Vodafone owns 55 percent of Vodafone Egypt, while Mobinil is jointly owned by Orascom Telecom and France Telecom.
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