Telecom Egypt eyes expansion, in acquisition talks

CAIRO, March 13 (Reuters) - State-run Telecom Egypt ETEL.CA(ETELq.L: Quote, Profile, Research) is in talks to acquire a telecom operator in the Middle East or eastern Europe to capture growth outside its home market, the company's chairman said on Thursday.

"Our preference is to buy an existing operation rather than greenfield," Akil Beshir said in a telephone interview. "We are in preliminary talks with one."

The company, which has a fixed-line monopoly in the most populous Arab country, posted a 4.4 percent increase in net profit in 2007 and would increase that rate of growth in 2008, Beshir said. (Writing by Will Rasmussen; Editing by Erica Billingham)