Reports from the Nigerian press suggest the joint offer by Vodacom SA and Virgin Mobile to take a 51% stake in mobile operator VMobile (formerly Econet Wireless Nigeria) may find itself beset by further problems, apart from the ongoing court action by Econet Wireless International (EWI).
Vodacom recently confirmed its intention to form a consortium with the Virgin Group, in order to pool their organisations` experience in mobile telephony and undertake a joint bid for a controlling stake in Nigeria`s VMobile.
However, recent reports emanating from the West African country suggest that some shareholders are questioning the motives behind the joint bid to purchase the company.
One VMobile shareholder, while refusing to be named, was quoted as saying the joint bid by the "two strange bedfellows smells of conspiracy which may not be in our interest to move the company forward".
Shareholders believe that, despite the ongoing action by EWI, there remains considerable value in the business and they should explore other opportunities to realise maximum benefit from any investment by an outside investor.
VMobile was the subject of an attempted buyout by Vodacom SA last year, until shareholder EWI claimed preferential rights to the shares Vodacom tried to purchase, sending the matter to an arbitration panel that still has to rule on the matter.
EWI has also sent VMobile`s board of directors a formal notification known as a 'Form 48`, which says they will be cited for contempt of court if they attempt to do anything, such as selling or transferring shares until the arbitration process is completed.
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