The French law firm Shearman & Sterling, commissioned by the Algerian government to value Orascom Telecom's (OT) Algerian mobile company Djezzy in preparation for its nationalisation, put the value of the company at $7 billion.
According to Arab Finance, a local brokerage, an official source at OT asserted that the French firm submitted its report to Algeria's government, but denies receiving any warning about such valuation from Algeria.
Djezzy has been the centre of a dispute between Orascom, its parent company, and the Algerian government, which said it wants to buy it. Orascom founder Naguib Sawiris said last year an acceptable price for Djezzy was more than $7.8 billion, more than twice what the Algerian government said it was willing to pay.
The high valuation, according to the source, rules out the possibility that Algeria would buy the company from OT, pointing out that there are a number of alternatives to settle the dispute with the Algerian government.
Another move that highlights the possibility of reconciliation between OT and the Algerian government is the latter's invitation of Djezzy to compete for 3G mobile licence which will be offered in 2012.
© Al Ahram Weekly 2011
