Orascom Telecom Holding (OTH) will today issue a statement to clarify its position on negotiations with MTN, a South African cellular network operator, said an official source at OTH.
The statement will focus on the reasons behind OTH’s request to cease trading international certificates of deposit at the London Stock Exchange, said the source.
News of ongoing negotiations between the two companies had sparked controversy, especially in light of tax disputes between Orascom Telecom Algeria (Djezzy) and Algerian authorities.
Sherif Sami, an investment expert, said that despite the negotiations between OTH and MTN which may lead to the latter’s acquisition of OTH, there’s still the possibility for the two companies to merge, expecially as Naguib Sawiris, chairman of OTH, previously expressed his desire to merge with another similar company in order to achieve growth.
There should be no difficulties if such a merger happens, said a source close to OTH, who added that such a step could be easier than selling Djezzy.
Translated from the Arabic Edition.
