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France Telecom KOREK and The Iraqi Telecom
Fruits
7.7.2012
By Mrs. Benaw Izzat, Erbil
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Special to
Ekurd.net |
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July 7, 2012
ERBIL-Hewlêr, Kurdistan region 'Iraq',
— This week on July 5th, France Telecom former CEO
Didier Lombard who left the company under pressure
in March 2010 was indicted as well as two others
managers by judge Pascal Gand in Paris over
allegations that he led a corporate culture of
harassment that resulted in the suicide of at least
30 employees.
His program so called “NEXT” cut more than 22,000
jobs over a short time and made managers change jobs
every three years. He was replaced by Stephane
Richard frequently described as a close friend of
former President Nicolas Sarkozy.
A few months later, on November 25Th 2010 the
Financial Times started announcing that France
Telecom was eyeing a stake in the Kurdish telecom
operator Korek. It ended up in a deal, investing USD
430 M for a 20% minority stake. (see the details
http://www.ekurd.net/mismas/articles/misc2012/4/state6060.htm
and
http://www.ekurd.net/mismas/articles/misc2012/4/state6069.htm
)
Among the 35 employees who committed suicide left
several notes blaming the intense pressure at work;
making hard to understand that suddenly a few months
later a small company like Korek could become by
virtue such a strategic priority justifying a heavy
investment in a war torn country like Iraq.
In 2012 France Telecom reported a strong loss on
this investment and now Ahmed Alomary, commissioner
of Iraq's Communications and Media Commission (CMC)
fines Korek, Asiacell and Zain for missing one more
time the deadline to do their IPO on Baghdad Stock
Exchange.
Zain announced that they already spent USD 20M to
prepare the IPO and they hired notorious
international banks such as BNP Paribas, Citigroup
and National Bank of Kuweit. Zain is fined
USD12.864/day but they represent 53% of the market.
(source Zain annual report 2011)
Asiacell now owned at 60 % by Qatar telecom
represents 38% of the market and is fined USD 8
500,-per day.
Korek which according to its CEO GhadaGebara
appointed Lebanon's Byblos Bank and Iraq's North
Bank in December 2011 (source
http://business.highbeam.com/409213/article-1G1-277602765/korek-telecom-appoints-banks-ipo-valuation
) represents 9% of the market and is fined USD 2
500,- per day.
France Telecom employees will appreciate that their
restless efforts have been bearing such a nice
fruit.
As for Zain with USD 20M they could have bought 10%
of Dar El Salaam bank (HSBC), or the total market
capitalization of the ISX insurance sector(USD12M)
plus the total of the investment sector (USD8M).
(source http://www.rabeesecurities.com/companies )
At the end will the Iraqi customer pay for those
bitter fruits?
By Mrs. Benaw Izzat - Ekurd.net
Copyright
© 2012 Ekurd.net. All rights reserved
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