MTN Applies For Prequalification In Tunisie Telecom Sale

JOHANNESBURG--South African telecommunications company MTN Group (MTN.JO) said Tuesday it has applied for prequalification to bid for a stake in Tunisian incumbent Tunisie Telecom.

Prequalification is one of the first steps in a formal bidding process initiated by Tunisian authorities, and the company said it couldn't confirm at this point whether it will later submit a formal bid.

The company said the move isn't related to a cautionary statement issued Sept. 19, in which MTN indicated it had entered negotiations that could have a material effect on its share price if successfully concluded. MTN said it is continuously exploring other expansion opportunities in Africa and the Middle East.

The Tunisian government plans to sell 35% of Tunisie Telecom, and one banker has estimated the value of the stake around EUR1.3 billion. Several big telecom operators are expected to bid for the holding, including France Telecom SA (FTE), Telecom Italia SpA (TI) and Telefonica SA (TEF).

-By Leia Parker, Dow Jones Newswires; +27 11 783 7848, leia.parker@dowjones.com

(Taska Manzaroli in Berlin contributed to this report.)

(END) Dow Jones Newswires"

Posted to the site on 4th October 2005