Bloomberg News

Orascom Telecom Media Snaps 14-Day Gain on Bets Rally Overdone

February 15, 2012

Feb. 15 (Bloomberg) -- Orascom Telecom Media & Technology Holding SAE, which owns a stake in Egyptian Co. for Mobile Services, fell for the first time in more than three weeks amid speculation its 76-percent rally over the period was overdone.

Shares of the Cairo-based company snapped a 14-day winning streak, retreating 5.7 percent to 1.49 Egyptian pounds at 12:49 p.m. in Cairo. That gave the company a market value of 7.8 billion pounds ($1.3 billion). Egypt’s benchmark EGX 30 Index retreated 0.6 percent.

France Telecom SA said Feb. 13 it reached a preliminary agreement to increase its stake in Egyptian Co., known as Mobinil, at 202.5 Egyptian pounds ($33.55) a share. The transaction is pending approval from shareholders and regulators.

“We’re seeing profit-taking as the shares near the 1.8- pound level we estimate they are worth after the Mobinil sale,” said Tamer Nigm, head of sales and trading at Cairo-based Watheeqa Securities Brokerage. “It’s still unclear whether profit from the sale will be distributed fully or partially to investors.”

Mobinil shares jumped the daily limit of 10 percent for a third day to 166.83 pounds.

--Editors: Shanthy Nambiar, Claudi Maedler

To contact the reporter on this story: Ahmed A Namatalla in Cairo at anamatalla@bloomberg.net

To contact the editor responsible for this story: Claudia Maedler at cmaedler@bloomberg.net


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