The ongoing spat between Orascom Telecom and France Telecom over ownership of Egyptian mobile operator Mobinil shows no signs of abating with both companies exchanging accusations and threats over the weekend. According to a Financial Times (FT) report today, Orascom’s CEO Naguib Sawiris has given France Telecom a deadline of tomorrow to conclude its purchase of Orascom’s shares in Mobinil and threatened to walk away from the deal if progress was not made. France Telecom, meanwhile, accused Orascom of “media agitation” over the affair. Orascom is reportedly liable for charges of US$50,000 per day for any delay in the deal, which should have concluded 10 April. France Telecom claims it has been unable to complete the deal because Orascom’s shares are still being held in the name of bank creditors.

The dispute began early last week when an international arbitration court ordered Orascom to sell its 28.75 percent in Mobinil’s holding company to France Telecom. The purchase would see France Telecom take 100 percent ownership of the holding company (also called Mobinil), which owns a majority 51 percent stake in ECMS, the mobile operator that uses the Mobinil brand. Under the court ruling, France Telecom must buy the shares at EGP441.66 (US$80) per share. However, Orascom subsequently argued that, under Egyptian law, France Telecom must also buy the remaining 49 percent in ECMS (which is 20 percent owned directly by Orascom and 29 percent free float) at an “equivalent” price of EGP273.26 per share. France Telecom has offered EGP200 per share for the remaining stake, arguing that it does not fall within the scope of the original court ruling. Last week an Egyptian regulator backed Orascom, claiming France Telecom’s offer significantly undervalued the business. According to the FT, France Telecom says it is seeking talks with the regulator to agree a “fair offer” for the remaining shares.