Allied Technologies (Altech) has confirmed it is in talks with Econet Wireless, a company locked in a legal battle with Vodacom.
Altech published a cautionary notice last night after Reuters on Monday quoted a source saying that the group was buying about 50% of Econet Wireless.
"Shareholders are advised that Altech continues to be involved in negotiations and confirms that the negotiations are with the Econet Wireless group of companies," the group says.
Last year locally-based Econet Wireless International (EWI) took cellular network company Vodacom to court in Nigeria, claiming that Vodacom breached a contract when it approached Econet Wireless Nigeria to buy a controlling interest in the Nigerian company.
EWI is a shareholder in Econet Wireless Nigeria.
Analysts are unclear on what impact an acquisition would have on the lawsuit. However, Vodacom is a supplier to Altech`s cellular business and the continuation of the case could result in a rivalry.
Initial indications are that the market has interpreted the deal as being negative for Vodacom. Shares in Telkom and Venfin, both Vodacom shareholders, slipped on Monday while Altech saw price gains. The Telkom and Venfin shares recovered yesterday in a strong market.
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