The dispute between Algeria and Orascom Telecom over the
Djezzy unit — the company’s biggest revenue earner — could sink a $6.6 billion
deal for Russian group Vimpelcom to buy Orascom assets.
Earlier this month, Naguib Sawiris, Orascom Telecom’s
chairman, sent a letter to Algeria’s prime minister saying the government was
illegally pressuring the company, adding it may have no choice but to go to
arbitration.
“Our position has not changed and will remain unchanged,”
telecommunications minister Moussa Benhamadi told reporters on Sunday on the
sidelines of a session of Parliament.
“What he said was intended to reassure shareholders.
Everybody is free to make statements but everybody should assume
responsibility,” Benhamadi said. “Orascom has expressed its readiness to sell
(Djezzy to the Algerian state). We are waiting for the evaluation before
starting talks.”
Algeria has hit Djezzy with hundred of millions of dollars
in back taxes and penalties and has blocked Orascom Telecom from selling it,
saying it wanted to acquire the unit itself.
While Orascom Telecom has agreed to start talks on Djezzy’s
nationalization, analysts say the price could be far below the unit’s market
value. Algeria has said it was hiring consultants to value Djezzy.
Algerian officials deny applying pressure on Orascom
Telecom, saying their dealings with the company have been in accordance with
the law.
