Briefs

---

Whose shares?

THE SAGA starring Orascom Telecom (OT) and France Telecom (FT) continued through this week. OT announced on Monday that it is extending the deadline for FT to buy the former's stake in MobiNil to 15 April. In a press conference held Monday, OT made it clear that its proposal was conditional on FT extending a mandatory tender offer to other shareholders in the Egyptian Company for Mobile Services (ECMS) before that date.Until press time, FT has not made that offer. MobiNil owns 51 per cent of ECMS, provider of the mobile phone service offered under the brand name MobiNil. FT's mandatory offer would be for 20 per cent additional OT shares in ECMS and 29 per cent of free float.

When asked what would happen if FT does not meet the final deadline, OT Chairman Naguib Sawiris told reporters that in that case no new FT offer would be accepted. "It is done, we will not accept it," Sawiris was quoted by Reuters.

In the meantime, on Monday FT reiterated its call on OT to execute the arbitration award issued in its favour by the International Court of Arbitration of the International Chamber of Commerce. Moreover, FT required OT to put a stop to its media campaign, "to create a calm and objective atmosphere to allow it to enter into constructive discussions with the Egyptian authorities."

Although the court has set a fine of $50,000 payable by OT for any delay in executing the award, OT argued that it was not able to execute the transfer of shares because FT did not provide the Egyptian Stock Exchange with the necessary documents and it also did not comply with the ruling of the Egyptian Capital Market Authority requiring a mandatory tender offer for the shares of ECMS.

Meanwhile, an FT statement said that "to date, MobiNil records indicate that the shares are still pledged to OT debtor banks. On its part, FT has several times submitted its bank documented correspondences guaranteeing the amount required for the award execution to transfer to it MobiNil Holding shares. It also proposed holding tripartite negotiations with OT and its debtor banks with the objective of un-pledging the shares in order to facilitate the award execution."

FT confirmed that on the implementation of the award, it would seek to find the best Egyptian local partner to work with while Sawiris made it clear during last Monday's press conference that OT prefers to keep its stake in MobiNil.

A new mindset

"What is the fastest way to survive in times of economic turbulence? See the glass half-full. In a nutshell, adopt the right mindset." This is part of an energising recovery prescription that was given to a large gathering of senior Egyptian CEOs and general managers by Irfan Mustafa, managing director for the Middle East, North Africa, Pakistan and Turkey region for Yum! Restaurants International. Yum is the parent company of KFC, Pizza Hut, Taco Bell, A&W and others.

According to Mustafa, the region, comprising 14 countries, has a network of 1,000 restaurants and $1 billion turnover.

The seminar entitled "Change Your Mindset in 16 Weeks" was organised this week by the Centre for Executive Excellence (CEE), a programme run by the Future Generation Foundation (FGF), on the event of launching the Executive Leaders Club that hosts 1,500 members of top management skills.

It is no secret that sales of international companies have dropped dramatically during the past few months. "On the macro level, news of foreclosures, bankruptcies and layoffs have had some very deep impact on the micro level. Fear and panic gripped the consumer and negatively impacted spending," said Mustafa, who added that in times of economic crunch, efficient management is responsible for adopting and introducing the right mindset to help absorb bad news and even look at the bright side of the picture.

A good example in the Egyptian case is provided by the Suez Canal. "The bad news is that Suez Canal revenues dropped by 21 per cent during March. But that is not the whole story because March revenues are up 12 per cent compared to February," commented Mustafa. Similarly, thanks to looming recession housing in Egypt is becoming more affordable, inflation has been halved and media costs have gone down dramatically.

"That is why it is only the fastest and the most efficient managers will take action, prioritise and do in 16 weeks what has to be done in 52 weeks."

Established in 1998, FGF is a non-profit, non-governmental organisation formed by key leading members of the private sector with the objective of developing the country's business sector and enabling it to compete in a global economy.

Web-surfing for clients

The site www.egypt-import-export.com is a new web tool aimed at helping Egyptian exporters and importers find business partners in some 185 countries. Launched last week by Credit Agricole Egypt (CAE), the new facility offers comprehensive analysis, research and resources for international business clients.

"CAE is committed to a new banking relationship -- one focussed on service that extends beyond traditional bank loans. The web will provide in-depth sector and country reports, immediate business alerts and robust database to allow enterprises to compete on the global economy," said Henri Guillemin, CAE's managing director, who added that the service will be available to clients and non-clients on free subscription basis.

The initiative underlines CAE's commitment to service small and medium size enterprises (SMEs) through providing knowledge and financial expertise. A frequently-asked-questions section will be dedicated to receiving enquiries and responding to them within 48 hours.