www.WirelessFederation.com/news: The world will witness the creation of fourth-largest mobile phone operator if the talk between South Africa’s MTN and Egypt’s Orascom Telecom materializes. In a $9 billion deal, MTN is contemplating purchase of some or all of Orascom shares but the way ahead does not seem to be smooth because of hurdles posed by the Algerian government.

Orascom telecom shares a very rocky relationship with Algeria since long. In 2008 Orascom Construction Industries sold its Algerian cement business to France which was opposed by Algiers having fraught ties with colonial rulers. The headquarters of Orascom Telecom’s Algerian unit, Djezzy, were ransacked in the violence that erupted during the world cup qualifying match. Senior Algerian officials on the other hand feel that economic liberalization, which let foreign investors like Orascom in, has not lived up to promises.

Djezzy has been accused by Algerian government of failing to pay about $597 million in taxes. Orascom had to raise $800 million via a rights issue to cover any cash shortfall in the meantime. So when MTN began its talk to buy Orascom, Algerian Finance Minister Karim Djoudi announced that Algeria had the right to acquire 51 percent of the capital in the Algerian entity, and also levy tax on the sale.

Algeria’s biggest mobile operator with almost 60 percent of market share, Djezzy is worth about $5 billion or more But the worth of the company might get down if it is forced to sell to the government or quits under other pressures and under that condition, MTN or any other foreign operator might be reluctant to take on such a unit.

However, Orascom too does not seem to be in mood to let go off the matter like that and its chairman, who is also one of Egypt’s richest men, has requested the Egyptian government’s help in arranging a meeting with top Algerian officials.