Egypt court overturns privatisation of two companies

An Egyptian court Sunday delivered a final verdict Sunday overturning the privatisation of the Nile Cotton Ginning Company, a day after cancelling the sale of another state company to a Saudi businessman.

The administrative court has not yet publicised the reasons behind the decision. The company had begun selling shares on the Egyptian stock market in 1997.

On Saturday, the court delivered a final ruling annulling the sale of Tanta Flax to Saudi investor Abdullah al-Kaki, the official Al-Ahram newspaper reported.

The court said in its ruling the 2005 sale was illegal and below the company's true worth, and violated the rights of workers subsequently laid off.

The government, eager to persuade foreign investors to shore up Egypt's tottering economy, had appealed lower court decisions cancelling the sales before the final rulings.