Bloomberg News

Orascom Telecom Retreats as Algeria Court Upholds Fine

May 28, 2012

Orascom Telecom Holding SAE (ORTE), North Africa’s biggest mobile phone company, fell to the lowest level in almost a week after an Algerian court rejected an appeal by the company’s local unit and upheld a $1.3 billion fine.

Shares of Cairo-based Orascom dropped 3.1 percent to 3.10 Egyptian pounds, the lowest intraday level since May 22, at 11:29 a.m. in the capital. Egypt’s benchmark EGX30 Index (EGX30) retreated 0.3 percent.

An Algerian appeals court confirmed a March 28 judgment by the Algerian Court of First Instance against Djezzy for violating foreign exchange regulations. The Algiers court suspended a two-year sentence against Chief Executive Officer Tamer El Mahdi and asked the company to pay a fine of 6 billion dinars ($79 million) on his behalf.

Orascom said the Algerian unit is taking steps to file an appeal with the country’s Supreme Court.

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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