Orascom may go to int’l arbitration over Algeria debacle

Egyptian telecommunications giant Orascom Telecom (OT) said on Thursday that it had little hope that Russia’s Vimpelcom would succeed in negotiations over a dispute with the Algerian government over the company’s Djezzy unit.

According to CEO Naguib Sawiris, coming to an agreement was unlikely in the long running dispute over ownership of the Algerian unit.

The dispute over Djezzy, OT’s largest source of revenue, has made a proposed $6 billion deal for Vimpelcom to take control of the Egyptian telecom operator and its parent, Wind Telecom, difficult, as shareholders are expected to meet over the deal in the coming days.

The deal is expected to be finalized next month.

“I do not think Vimpelcom will succeed in negotiations in Algeria,” Orascom Telecom Chairman Naguib Sawiris said at a shareholders meeting on Thursday.

OT Chief Executive Khaled Bichara told the meeting if Vimpelcom negotiations did not succeed, Orascom would seek international arbitration.

Sawiris said on April 4 his company had made no progress in the dispute with the Algerian government and will bring the matter to international arbitration if it is not resolved.

By Desmond Shephard