Orascom Development calls off placement on share price decline

Orascom Development Holding AG called off its plan to increase capital using a private placement of about 2.3 million shares because of “irregular trading activities” in its shares today, involving “unusually high volume coupled with a steep decline in share price.” The company has notified SIX Swiss Exchange about the irregular trading, it said. The capital increase was supported by the majority shareholder, Samih O Sawiris, who backed the offering by committing up to CHF85 million, Orascom Development said. First-quarter revenues are in line with the company’s strategy and current expectations and as a result, management believes to be on track with analyst full-year expectations for 2010, the company also said.