13th April 2009: France Telcom (FT) reiterates its call on Orascom Telecom (OT) to execute the arbitration award issued in for its favor by ICC as a result of disputes initiated by OT in 2007. Moreover, FT requires OT to stop the media campaign to create a calm and objective atmosphere to allow it to enter into constructive discussions with Egyptian authorities.
Delay in Executing the Award:
ICC arbitration award has not been executed before 10th of April 2009 due to the absence of all information and documented correspondences that proves un-pledging of OT owned Mobinil Holding shares. To date, Mobinil records indicate that the shares are still pledged to OT debtor banks. Also, the Arbitration court did not set a committing date for the execution of the award. However, the court has set a delay fine of US $50,000 payable by OT from the 10th April 2009 until the award execution date.
On its part, FT has several times submitted its bank's documented correspondences guaranteeing the amount required for the award execution to transfer to it Mobinil Holding shares. FT has also proposed holding tripartite negotiations with OT and its debtor banks with the objective of unpledging the shares in order to facilitate the award execution.
Next Steps:
As soon as OT implements the arbitration award, FT would be willing to activate negotiations with the Egyptian Money Market Authority to reach a fair purchase offer for ECMS minority shares, particularly with the shareholders.
Finally, FT, controlling Mobinil as a majority owner of Mobinil Holding since its establishment, is recapping it was not FT who sought for a partnership severance.
FT confirmed that on the implementation of the award and engaging in negotiations with Egyptian authorities, it will seek to find the best Egyptian local partner to continue ECMS mesmerizing developing.
-Ends-
About France Telecom
France Telecom, one of the world's leading telecommunications operators, had consolidated sales of 53.5 billion euros in 2008 and a customer base of more than 182 million customers in 30 countries. Orange, the Group's single brand for Internet, television and mobile services in the majority of countries where the company operates, now covers 123 million customers. At the end of 2008, the Group had 122 million mobile customers worldwide and 13 million broadband Internet (ADSL) customers in Europe. Orange is the number three mobile operator and the number one provider of broadband Internet services in Europe and, under the brand Orange Business Services, is one of the world leaders in providing telecommunication services to multinational companies.
The Group's strategy, which is characterized by a strong focus on innovation, convergence and effective cost management, aims to establish Orange as an integrated operator and benchmark for new telecommunications services in Europe. Today the Group remains focused on its core activities as a network operator, while working to develop its position in new growth activities. To meet customer expectations, the Group strives to provide products and services that are simple and user-friendly, while maintaining a sustainable and responsible business model that can be adapted to the requirements of a fast-paced and changing eco-system.
France Telecom (NYSE:FTE) is listed on Euronext Paris (compartment A) and on the New York Stock Exchange.
For more information: www.orange.com, www.francetelecom.com, www.orange-business.com
Contacts Presse:
Béatrice Mandine,
01 44 44 93 93,
beatrice.mandine@orange-ftgroup.com
Bertrand Deronchaine,
01 44 44 93 93,
bertrand.deronchaine@orange-ftgroup.com
Amany Shenouda,
202 24185741-24196663,
amanyshenouda@radapr.com
© Press Release 2009
