Is MTN in talks with Egypt’s Orascom about a potential tie-up? A report by Bloomberg on Thursday afternoon implied that a deal may be on the cards and that it could be worth as much as US$10bn.

According to the report, which quotes three unnamed sources, MTN has approached various banks and is seeking to raise $5bn to help “fund the acquisition of units from Orascom”.

The Bloomberg report says MTN may be interested in Orascom’s operations in Egypt, Algeria, Zimbabwe and Tunisia. It also says MTN may be prepared to pay as much as $10bn for the assets

Rumours of a potential deal with Orascom follow last year’s failed merger talks between MTN and India’s largest operator, Bharti Airtel.

MTN president and CEO Phuthuma Nhleko (pictured), who is due to leave the mobile operator in February 2011, may be keen to do a final big deal before he hands the reins to a successor.

The Financial Times newspaper reported on Thursday that Orascom would make a “price-sensitive announcement this week”. This could be related to a tie-up with MTN, it said.

The rumours follow Bharti’s decision to acquire the African assets of Kuwait-based Zain in a deal worth $10,7bn. That deal has put the Indian company in direct competition with MTN for the first time, including in MTN’s most profitable and important market, Nigeria.

In an interview with TechCentral last month, Nhleko wouldn’t rule out the possibility of doing another blockbuster deal before he leaves MTN.

MTN shareholders haven’t taken kindly to rumours of a deal with Orascom. The group’s share price was down 2,6% at the close of trade on the JSE on Thursday. — Duncan McLeod, TechCentral