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Etisalat and Orascom lose out bid for ArmenTel

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  • Etisalat and Orascom lose out bid for ArmenTel

    Etisalat and Orascom lose outbid for AmenTel

    ITP Technology, United Arab Emirates
    July 31, 2006

    by Alex Ritman

    Etisalat has lost the bidding for Armenian fixed and mobile operator
    ArmenTel. According to the Russian news agency ComNews, the 90% stake
    currently held by Greek telco OTE will go to a consortium consisting of
    India's VTEL holdings and Knightsbridge Associates, and also believed
    to include Sistema Group of Russia. The Russian company is thought
    to be taking control of ArmenTel's monopoly fixed-line business with
    the Indian and Armenian side of the consortium taking responsibility
    for its mobile operations.

    Following OTE's announcement that it was to sell its 90% stake in
    April, 10 parties announced their interest, including Etisalat,
    Sistema, MTC of Kuwait and Belgium's Belgacom. In June, OTE reduced
    the number of bidders to four, namely Vimpelcom and MTS of Russia,
    an Etisalat-backed consortium, and the winning group.

    While the amount of the winning bid is as yet unknown, the 90% stake
    is estimated to be worth over US$300 million.

    As of April 2006, ArmanTel had a fixed-line subscriber base of around
    595,000 subscribers and a mobile subscriber base of around 320,000.

    Egyptian operator Orascom has also missed an expansion opportunity,
    losing out in the auction for Serbian mobile operator Mobi 63 in the
    Balkan country's largest state-owned asset sale. Mobi 63, which has
    over two million subscribers, eventually went to Norway's Telenor
    for US$1.9 billion. Telekom Austria was also involved in the auction.

    From: Emil Lazarian | Ararat NewsPress
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