Egyptian mobile telecoms operator Mobinil expects its two major shareholders to announce a resolution to their long-running dispute within a month, its chairman said.

Orascom Telecom's executive chairman Naguib Sawiris had met France Telecom's new chief executive, Stephane Richard, in Paris late in March and talks were continuing between senior executives, Alex Shalaby told Reuters in an interview.

Asked when he thought a deal could be reached, Shalaby said: "I'm talking no more than a couple of weeks, a month maximum. I know there are intensive discussions."

An Egyptian court on Saturday upheld a ruling blocking France Telecom from gaining full control of the company, a development Shalaby said helped push the sides back to negotiation.

"If it (the ruling) did anything, it certainly is going to accelerate the process, if not indeed force a settlement that is finally acceptable to both parties. I am very hopeful that this will happen and will happen soon," Shalaby said.

Shalaby made clear that he, as an Orascom representative and chairman of the board, was not directly involved in the talks.

Structure

Orascom and France Telecom have clashed over strategy for the Egyptian Company for Mobile Services (ECMS), known by its Mobinil brand name.

Orascom took the dispute to a Geneva-based arbitration court in 2007, which ruled last April that Orascom should sell its minority stake in their shared holding company that owns 51 per cent of ECMS.

The decision was not implemented, as the firms disputed the ramifications for the remaining shares, including Orascom's 20 per cent direct stake.

Shalaby said the management or board structure of the firm would likely change as a result of the talks, but the settlement would retain both as significant shareholders.

He said such a resolution would enable the long-discussed sale of Orascom's Internet service provider, LINKdotNET, to Mobinil.

"If, in the final situation after a settlement is reached, we keep the two shareholders in Mobinil, there is no doubt in my mind the sale will proceed," he said. "If, on the other hand, it is different, I don't know what the answer is."

Shalaby said last month the board had set an internal target of one month to secure that deal. – Reuters