Vodafone ends talks on selling Egypt stake: companies

1st June 2010, Comments 0 comments

British telecoms giant Vodafone has ended talks on selling to Telecom Egypt its stake in an Egyptian mobile phone joint venture, the two companies said on Tuesday.

"Vodafone and Telecom Egypt announce that discussions concerning the ownership structure of Vodafone Egypt (VFE) have concluded," they said in a joint statement.

"The parties have agreed that it is in the best interest of VFE that the current ownership structure should remain in place.

"The parties remain committed to working together to ensure the ongoing success of VFE," the statement concluded.

The Financial Times reported on May 21 that Telecom Egypt, which is 80-percent owned by the Egyptian government, had contacted Vodafone to buy its 55-percent stake in the venture.

The report said the stake would cost about three billion pounds (4.41 billion dollars, 3.59 billion euros).

Vodafone Egypt is the second biggest mobile phone operator in Egypt, behind ECMS, which is co-owned by France Telecom and Orascom Telecom, a regional giant that is based in Cairo.

© 2010 AFP

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