The saga over ownership of Egypt’s largest mobile operator, Mobinil, sunk further into a legal dispute this week as Orascom rejected a sweetened offer from France Telecom to take control of the firm. According to the Financial Times, France Telecom increased its offer for Orascom’s direct shares in ECMS – the company that controls 100 percent of Mobinil – after the Egyptian regulator rejected an earlier offer. An Egyptian stock market panel was expected to consider France Telecom’s higher bid today, but Orascom has subsequently appealed to an Egyptian court to have the transaction scrapped altogether, arguing that France Telecom has not met completion deadlines. The deal was originally meant to close on 10 April.

The dispute began in March when the Arbitration Court of the International Chamber of Commerce (ICC) ruled that France Telecom should buy-out Orascom’s 28.75 percent in the holding company (also known as ‘Mobinil’) that controls 51 percent of ECMS, a deal that would give France Telecom 100 ownership of the holding company. The court set a price of EGP441.66 (US$80) per share for Orascom’s 28.75 percent stake – a price not disputed by either operator. However, Orascom subsequently argued that, under Egyptian law, France Telecom would also have to buy-out the separate 20 percent stake Orascom owns directly in ECMS at an ‘equivalent’ price of EGP273.26. France Telecom’s original offer of EGP200 was rejected and the value of its most recent offer is unknown. According to the Financial Times, Orascom is now counting on legal action to scrap the original transaction imposed by the ICC.