Rumours rise again over VimpelCom/Orascom tie-up

Rumours that Egypt’s Naguib Sawiris is in talks with Russia’s VimpelCom have resurrected again after sources told Bloomberg News that the two companies are now looking at a merger of their assets. The combined company would be valued at more than US$25 billion, people familiar with the matter told Bloomberg.

According to the report, Sawiris would become a significant minority investor in the new enlarged company, which would include his Weather Investments’ 51 per cent stake in Orascom Telecom Holding and Italian mobile operator Wind Telecommunications.

There had been reports earlier this month that VimpelCom was in talks with Naguib Sawiris to buy Italy’s Wind Telecommunications and a 51 per cent stake in Orascom Telecom on a deal that would be worth around US$6.5 billion. That deal was denied in a statement to the stock exchange which was carefully worded to leave open other options.

The transaction would create an entity with a combined total mobile subscriber base of more than 200 million customers.

VimpelCom was formed from the merger of assets owned by Russia’s Alfa Group and Norway’s Telenor. VimpelCom is 39.6 per cent owned by Telenor while Alfa’s Altimo unit controls 39.2 per cent and minority shareholders own 21.2 per cent.