Vimplecom’s Orascom buy not a done deal: Telenor

MOSCOW (BestGrowthStock) – Vimpelcom’s (VIP.N: ) $6.6 billion bid to buy Orascom from Egyptian tycoon Naguib Sawiris is by no means a done deal, the CEO of Telenor (TEL.OL: ), one of the Russia telecom group’s main shareholders, was quoted as saying.

“We are viewing this deal as a sum of various conditions — either it will be approved or it will not. A great deal of questions needs to be resolved before this can be called a done deal,” Chief Executive Jon Fredrik Baksaas told Vedomosti business daily in an interview published on Wednesday.

A key sticking point in the deal is the battle for control of Algerian telecoms business Djezzy — Orascom’s (ORTE.CA: ) most lucrative asset which Vimpelcom wants to keep, but which the Algerian government wants to nationalize.

Asked whether the deal will go ahead even if Vimpelcom does not get Djezzy, Baksaas replied: “There is no answer yet.”

Norwegian Telenor is generally seen as taking a more cautious approach on expansion than Vimpelcom’s other main shareholder — Russia’s Alfa Group.

Asked if Telenor had been less keen on the deal, Baksaas said: “You may well turn out to be correct in your assumption. But Telenor and Altimo (Alfa’s telecoms arm) have equal rights…and such issues require a balanced decision.

(Writing by Toni Vorobyova; Editing by Anshuman Daga)

Vimplecom’s Orascom buy not a done deal: Telenor