MTN says talks with Egypt's Orascom continue

JOHANNESBURG: MTN Group Ltd, Africa's largest mobile phone company, said it is still in talks with Orascom Telecom Holding SAE.

The Algerian government's opposition to a sale of the local Orascom unit, the biggest and most profitable asset of the deal, cast doubt on whether MTN would proceed with its bid.

MTN said on April 28 that it was in negotiations to buy all or part of Orascom Telecom, the biggest mobile-phone company by subscribers in the Middle East.

"Discussions are continuing," MTN Corporate Affairs Director Nozipho January-Bardill said via phone today.

Orascom Telecom also operates in North Korea, Bangladesh, Pakistan, Egypt, Tunisia, the Central African Republic, Burundi, Namibia and Zimbabwe.

January-Bardill also said that MTN is not in talks to merge with or buy a stake in India's Reliance Communications Ltd. "It would be shooting ourselves in the foot" to hold talks with two different companies at the same time, she said.

Reliance Communications, controlled by billionaire Anil Ambani, said yesterday it had received various proposals from "reputed international telecom companies" interested in acquiring a stake in the business. MTN and Reliance failed to reach agreement on a deal in 2008.