An Egyptian court has upheld a ruling barring a France Telecom buyout of mobile operator Mobinil. Judge Hamdi Yassan said minority shareholders would be disadvantaged by the French firm's offer at EGP 245 per share, less than the amount an arbitration court said France Telecom should pay for Orascom Telecom's stake in Mobinil. The EGP 28 difference in the price violates principles of equality in opportunity for shareholders. Reuters reports from the court ruling. The court decided in January to block regulatory approval of the fourth such bid from France Telecom, a day before it was to proceed. Orascom lawyer Osman Mowafi said the decision was a big victory for Orascom. A spokeswoman for France Telecom said the company did not wish to comment on the matter. Almost exactly a year ago an arbitration ruling called on the French firm to buy out Orascom Telecom's stake in their jointly held holding company for around EGP 273 per share. That sale was not completed as the firms disputed the implications for shares in the Egyptian Company for Mobile Services (ECMS), known by its Mobinil trade name. Orascom also owns a 20 percent direct stake in ECMS. France Telecom said any offer would be voluntary, while Orascom said it was mandatory to offer the same price to all. The decision violated principles of transparency, disclosure, and equality of opportunity for shareholders, the court decision said, referring to the regulator's approval. While citing the price discrepancy as one reason behind the decision, the presiding judge said the ruling's focus was on the way the regulator granted the approval. A lawyer from the Egyptian Financial Supervisory Authority told Reuters that it may still appeal the decision.
