Sawiris backs new European telecoms fund

Naguib Sawiris, the Egyptian telecoms billionaire, has backed a fund management group formed by former Wind and Vimpelcom executives raising money to buy underperforming telecoms businesses in Europe.

Leading European institutional fund management groups have been approached to invest in the private equity fund in recent weeks, which will target smaller telecoms groups struggling in the tough economic conditions in many European markets, or that are being sold by larger but heavily indebted operators.

There have been recent signs of opportunistic corporate acquisitions in the telecoms market, with Carlos Slim's América M?vil looking to raise its 7.3 per cent stake in KPN to 28 per cent in an offer to shareholders. Hutchison Whampoa tabled a €2bn bid for Eircom, the troubled Irish operator, while Telekom Austria has been at the centre of stake building by investment groups.