Vodafone is reported to have started talks with South Africa's MTN regards taking a stake in the mobile phone operators international operations. The South African Business Times newspaper says that the talks started after the government apparently blocked attempts by Vodafone to take a majority stake in its existing partner, Vodacom.
Sources told the newspaper that Vodafone had become increasingly frustrated with delays in a planed sales of 15% of Telkom, which owns 50% of Vodacom. The sale would have pushed Vodafone's effective control of the company above 50%, giving it control of the business without having to spend a significant sum on an acquisition. Vodacom will also need to divest a substantial stake by the end of this year to a Black Empowerment group, further diluting both companies stake in the company.
The talks were confirmed by an MTN insider and by an independent source in
the South African financial services sector, who is familiar with the detail of
the discussions. Although Vodafone denied any talks were carrying one, MTN did
confirm that Vodafone is one of several companies they are talking to - as part of normal business relations.
The talks would only involve MTN's non-South African assets, which would avoid competition issues within the country or require it to sell its stake in Vodacom.
MTN also has very little overlap with Vodafone in their respective international markets.
On the web: Business Times
Posted to the site on 23rd March 2008
Posted to: www.cellular-news.com/story/30058.php