Telecom Egypt is reportedly keen to re-enter talks with Vodafone concerning the takeover of the UK group’s local mobile business, reports Bloomberg today. Telecom Egypt, the country’s fixed-line monopoly operator and owner of a 45 percent stake in Vodafone Egypt, tried to buy-out its partner last year but a deal was not reached. The operator is now thought to want to re-open negotiations now that plans to issue a fourth mobile licence in the country appear to have been scrapped. “There are a lot of changes in Egypt now and we are not sure whether launching a new license at this moment is the right decision from the economic point of view,” said Egypt’s Communications Minister Magued Osman.

Since the failed talks a year ago, Egypt has experienced a seismic political shift with street protests in February eventually ending the three-decade rule of President Hosni Mubarak. During the protests, the Egyptian authorities cut Internet and mobile access, and instructed operators to send out text messages on its behalf – a controversial procedure which may yet persuade Vodafone to quit the country. A sale of its local unit to Telecom Egypt would also be in line with the UK-based group’s strategy of disposing of its minority and non-core assets. It is has recently offloaded assets in China (China Mobile) and France (Vivendi), while its stake in Polish operator Polkomtel is also expected to be sold soon. “They were looking to sell previously; it could be another boost for the shares if they can sell it for a good valuation,” said James Crawshaw, an analyst at Standard & Poor’s Equity Research.