Vodafone Denies South African Takeover Talk

Vodafone has denied South African investment talk as "complete speculation". A report in the South African Sunday Times newspaper said that Vodafone had entered into talks to buy the landline operator, Telkom South Africa. The paper said that Vodafone Chief Executive Officer Arun Sarin has visited South Africa this week and met with Telkom CEO, Papi Molotsane, senior government officials and key Telkom investors.

Sarin would not confirm in an interview with Business Times on Friday the possibility of Vodafone taking over Telkom. He did confirm he had "a very good, fruitful" meeting with Telkom's Molotsane on Thursday.

There have historically been tensions between Vodafone and Telekom over their joint ownership of the mobile network, Vodacom. Following Vodafone's recent purchase of Venfin, the company now owns an equal 50% of Vodacom - and also revoked an informal agreement that had restricted Vodacom from investing in African nations north of the Equator.

Commenting on Sarin's new strategy, Vodacom CEO Alan Knott-Craig said: "We welcome his comments and look forward to our first acquisition north of the equator."

Telkom is valued at approximately US$10.2 billion."

Posted to the site on 3rd July 2006