MTN Says No Basis for Speculation of Stake Buy by Vodafone

JOHANNESBURG -(Dow Jones)- MTN Group, Africa's largest mobile phone network operator, Tuesday said there is no basis for speculation that Vodafone Group is in talks to buy a multibillion-rand stake in the company.

The Sunday Times had reported that the U.K.-based telecommunications company had initiated talks with MTN after being blocked by the South African government from buying a controlling interest in Vodacom, the mobile operator it jointly owns with Telkom SA.

The newspaper said the talks were confirmed by an unnamed MTN insider and someone in South Africa's financial services industry who is familiar with the detail of the discussions. However, it also said Vodafone spokesman Bobby Leach denied that any talks were underway.

"The MTN Group can confirm that there is no basis for the speculation about Vodafone buying a stake in MTN," MTN's corporate affairs department told Dow Jones Newswires in an emailed reply to questions.

Johannesburg-based MTN last week posted flat net profit for 2007 as a tax holiday in Nigeria came to an end, but said its subscriber base grew by 51% over the year to 61.4 million.

-By Robb M. Stewart, Dow Jones Newswires; +27 11 783 7848; robb.stewart@dowjones.com

(END) Dow Jones Newswires

Posted to the site on 25th March 2008