Info-Prod Research's Gil Feilier: Orasom Telecom’s owners might try to create a consortium to take over Hutchison Telecom International.
Egypt’s Orascom Telecom (LSE:OTLD; CASE:ORTE) did not buy shares in Hutchison Telecommunications International in order to acquire a stake in Partner Communications Co. Ltd. (Nasdaq: PTNR; TASE:PTNR; LSE:PCCD), says Info-Prod Research (Middle East) CEO Dr. Gil Feilier, a Middle East economic expert.
Feiler does think that Orascom Telecom chairman and CEO Naguib Sawiris, the controlling shareholder, and other Arab tycoons might try to create a consortium to take over Hutchison Whampoa, which could create a security problem for Israel.
Orascom Telecom indirectly owns 9.99% of Partner, after acquiring 19.3% of Hutchison Telecommunications International for $1.3 billion. Sawiris recently told “Business Week” that he wanted to expand Orascom’s stake in Hutchison Telecommunications International . This is of critical importance. Egyptian ownership of Hutchison Telecommunications International is liable to harm Israeli security interests, because of the sensitivity of telephony for intelligence, and because Orascom Telecom operates in other Arab countries.
Published by Globes [online], Israel business news - www.globes.co.il - on January 12, 2006