Johannesburg-based MTN – Africa’s largest mobile company – is reportedly in talks to acquire several of Orascom’s mobile businesses in Africa, reports the Financial Times. According to sources, talks had initially focused on Orascom’s Algerian business but have been expanded to include most of its African footprint, which also includes assets in Tunisia, Burundi, Central African Republic, Namibia and Zimbabwe. One person familiar with MTN said Phuthuma Nhleko, MTN’s CEO, had coveted Orascom’s African mobile businesses for years. However, it is understood that MTN is not interested in Orascom’s minority stake in ECMS – Egypt’s leading mobile operator – or any of Orascom’s assets outside of Africa. MTN confirmed in a statement today that it was in talks that “may or may not lead to a transaction,” but did not name Orascom directly. However, trading in Orascom’s global depositary shares in London was suspended pending an announcement by the company.

MTN’s move on Orascom, which has a market capitalisation of US$7 billion,  is the latest attempt by the South African firm to expand its business after two failed attempts in recent years to merge with India’s Bharti (Bharti eventually entered Africa via its recent acquisition of 15 of Zain’s mobile businesses in the region). Meanwhile, despite recent comments from chairman Naguib Sawiris that Orascom is not for sale, the Egypt-based firm has suffered problems recently in Africa. Its Algerian network – Djezzy – is Orascom’s largest market in Africa but was hit by a US$597 million tax bill, which negatively affected its fourth-quarter results for 2009 (Orascom lost its appeal against the bill this month). Djezzy’s headquarters and shops were also targeted by rioters following the high-profile World Cup qualifier between Egypt and Algeria last year. Last week, Orascom also settled a long-running – and bitter – dispute with France Telecom over ownership of ECMS.