CI Capital reiterated, in a recent study, Buy rating on Telecom Egypt (ETEL) after CEO Tarek Tantawy resignation.

Mohamed Hamdy, Analyst at CI Capital, stated that this is the second time Tantawy decides to step down.

The last time was in June 2009 when he was Vice President and Chief Financial Officer, but he had decided to withdraw his resignation in July 2009. In August 2009, Tantawy was appointed as CEO and Managing Director.

It was rumored that Tantawy had resigned in March 2011 following protests by ETEL employees.

However, ETEL denied the rumor in a statement sent to the Egyptian Exchange (EGX) later.

Today, we do not think Tantawy's resignation will cause any corporate instability as we believe it will not affect ETEL's day-to-day business, given the company's strong fundamentals and senior management expertise.

It is worth noting that, TE announced that its Chief Executive Officer (CEO) and Managing Director, Tarek Tantawy, decided to step down, effective May 1st, 2011, to pursue other career opportunities.

Chief Technology Officer (CTO), Mohammed Abdel Rehim Hassanein, will be interim CEO until a permanent replacement for Tantawy is appointed.

arabfinance.com