Mobile operator MTN has decided against pursuing any legal avenues of recourse regarding the purchase of African operator Celtel by Kuwaiti firm MTC.
Last month, the company claimed it had not decided on any final course of action as far as its dealings with Celtel and Mohamed Ibrahim, Celtel`s chairman and a major shareholder, went although it has reserved its rights to claim damages against both.
Kuwaiti firm MTC recently purchased Celtel for $3.4 billion (R19.6 billion), although MTN apparently believed that legally binding undertakings were given in favour of its $2.67 million bid for the company, which occurred prior to MTC`s bid.
MTN made an application in the English High Court for an order for disclosure of documents and information, including the irrevocable undertakings signed by Celtel shareholders in respect of an offer by MTN and the terms on which such undertakings were held.
The operator`s board of directors has now, however, resolved that it is not in MTN`s long-term best interests to pursue further legal means at this stage, and has informed shareholders that they are no longer required to exercise caution when dealing in MTN securities.
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