Orascom confirms its interest in Brazil firm

Egyptian telecommunications giant Orascom Telecom is looking at purchasing a 38% stake in South American telco Brazil Telecom Participacoes, it said last week.

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By  Administrator Published  March 7, 2007

Egyptian telecommunications giant Orascom Telecom is looking at purchasing a 38% stake in South American telco Brazil Telecom Participacoes, it said last week.

Orascom confirmed its interest in acquiring the stake in Brazil Telecom, which is owned by a consortium led by Telecom Italia, after a Brazilian newspaper published an article on a prospective bid.

The newspaper report said that Orascom had placed a bid to controlling shareholders, including Telecom Italia, Citigroup and various pension funds. 

“Orascom Telecom’s interest comes in line with its declared strategy of constantly monitoring investment opportunities in emerging countries offering large markets with untapped demand and high growth potential in which it can leverage on its operating skills and scale,” the statement said.

Telecom Italia has been looking to offload its share in the Brazilian company since July last year when it announced it had hired JP Morgan Chase & Company to manage the sale of its stake.

Owned by Egyptian billionaire Naguib Sawiris, Orascom operates GSM networks in Egypt as Mobinil, Iraq as Iraqna and Pakistan via Mobilink, as well as in Algeria, Bangladesh, Tunisia and Zimbabwe.

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