Orascom Telecom Holding SAE dropped the most in more than six months in Egypt after billionaire Mikhail Fridman withdrew an offer to buy a 16 percent stake in the mobile phone company.
The shares of Cairo-based Orascom Telecom fell 5.6 percent, the most since Nov. 25 , to 4.7 Egyptian pounds (67 cents) a the close. The drop made them the biggest decliner on the EGX 30 Index, which retreated 1.2 percent. Orascom Telecom shares jumped 7.8 percent last week compared with a gain of 1.8 percent for the benchmark.
Baskindale Ltd., a unit of Fridman’s Altimo Holdings & Investments Ltd., had asked for permission to buy the stake after its initial 70 cents per-share offer failed to attract 26 percent of holders, the minimum it set to execute the deal. Orascom Telecom holders who had accepted Altimo’s offer got permission to take back their stock, according to a statement to Egypt’s bourse.
“Now that investors who tendered their shares have access to them some may be taking profits,” said Wafik Dawood, director of institutional sales at Cairo-based Mega Investments Securities. Baskindale’s withdrawal is “positive from a valuation perspective,” he said.
Orascom Telecom shares were valued at 86 cents a share by its adviser on the deal, HC Securities & Investments. About 7.3 million shares traded, or almost two times the three-month daily average.
Altimo is the biggest shareholder in VimpelCom Ltd. (VIP:US), which owns 52 percent of Orascom Telecom.
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