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Al-Ahram Weekly 9 - 15 March 2000 Issue No. 472 
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Published in Cairo by AL-AHRAM established in 1875 |
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Al-Ahram Weekly 9 - 15 March 2000 Issue No. 472
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| Published in Cairo by AL-AHRAM established in 1875 |
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Egypt Region International Economy Opinion Culture Features Focus Books Travel Living Sports Profile People Time Out Chronicles Cartoons Cement goes soft
THE THREE-MONTH battle over Ameriya Cement has ended with the Holding Company for Metallurgical Industries settling on Penrod Investments' bid for 95 per cent of Ameriya, including the holding company's 29 per cent stake.Penrod, a wholly owned subsidiary of the Portuguese cement giant Cimpor, originally submitted a bid for a 51 per cent stake at LE102 per share. It subsequently increased the stake in response to the announcement by Ameriya's holding company that it would not consider bids for less than 90 per cent of Ameriya's equity, reducing the share price offer to LE91.
Cimpor's successful bid is the latest development in the sector that has witnessed a flurry of acquisition activity, provoking a backlash of concern that the strategic cement sector was in danger of falling into foreign hands in its entirety. As a consequence, the government last week announced the suspension of any further privatisations of the remaining public-owned cement companies, marking a dramatic U-turn in policy.
Of four major cement producer privatisations in recent months, three were snapped up by foreign investors. The government announcement acted to dampen skyrocketing cement sector shares.
Cimpor's successful bid followed the rejection by the Capital Market Authority (CMA) of Al-Ahram Cement's LE105 per share offer for a 55 per cent stake in Ameriya. The CMA has so far declined to give reasons for its rejection of the offer. Al-Ahram, had been widely tipped to win the battle over Ameriya.
Job creation
PRESIDENT Hosni Mubarak joined Arab officials at the Arab Labour Conference in Sharm Al-Sheikh in calling for greater regional integration.Representatives of Arab chambers of commerce, the World Labour Organisation and Arab Labour Ministers attended, as well as the International Federation of Labour Unions .
"Arab states need a common market... if they are to preserve a reasonable income and standard of living," Mubarak told the opening session in a statement read by Ahmed El-Amawi, the Egyptian Minister of Labour.
Ibrahim Kuweidar, director of the Arab Labour Organisation, (ALO), which organised the conference, called for greater inter-Arab investment to "create more jobs in the Arab region in order to confront the dangers of unemployment".
E-security
INTERNET Security Systems (ISS), a US-based company specialising in security systems for e-businesses, has opened a regional headquarter in Cairo as part of its strategy to expand operations into Europe, the Middle East and Africa.A joint venture, ISS Middle East has been formed between the US company and Sarhank Group for Investment. ISS officials say the new venture will enable their company "to continue to expand its global presence in response to the increasing demand for e-business security technology and services".
