(Adds share price, background)
CAIRO, March 21 (Reuters) - Egypt has decided to suspend
the sale of a stake in state-controlled Telecom Egypt because of market conditions, three sources close to the matter
said.
Telecom Egypt said on March 7 that the government had
started to consider a sale of an additional stake in the
company. Sources had previously told Reuters the government was
seeking to sell a 10% stake. The government currently owns 80%
of Telecom Egypt.
Egypt's government has announced ambitious plans to sell off
stakes in public enterprises and boost public sector investment
as it faces severe economic pressures and a shortage of foreign
currency.
Earlier this month, Telecom Egypt shares fell sharply from a
high of 27.8 Egyptian pounds following news of the planned sale.
On Tuesday, they climbed 4.55% to close at 22.99 Egyptian
pounds, based on Eikon data.
Government officials declined to comment and Telecom Egypt
officials were not immediately available for comment.
(Reporting by Hadeel Al Sayegh, Patrick Werr and Momen Saeed
Atallah
Writing by Aidan Lewis
Editing by David Goodman and Jane Merriman)
