Telkom ends talks with MTN and Vodafone

28 Nov 2007

Telkom South Africa has ended talks with MTN and Vodafone over the possible sale of its fixed line and mobile businesses. MTN had been in negotiations about the acquisition of Telkom’s domestic wireline operations, while Vodafone had been discussing the possibility of upping its interest in South Africa’s largest cellular operator, Vodacom, by buying some or all of Telkom’s 50% stake. In a statement, Telkom said the costs associated with the wireline sale would be too high and the Vodacom deal was dependent on an agreement being reached with MTN. Telkom added that it has had other ‘expressions of interest’, though it has not yet begun any further talks. The news of the collapse of the negotiations saw Telkom’s share price drop by as much as 10%. For its part, Vodafone says it is still interested in increasing its share in Vodacom.

South Africa, MTN Group, Telkom South Africa, Vodacom Group, Vodafone Group