Telkom in talks with MTN, Vodafone

Fixed-line operator Telkom issued a cautionary announcement late yesterday advising shareholders it has entered into discussions with MTN and Vodafone.

This follows weekend speculation that Telkom may be looking to shed its 50% stake in SA's biggest mobile operator Vodacom, which is co-owned by UK-based Vodafone. Market observers have also speculated that MTN could be eyeing Telkom's fixed-line business.

"At its results presentation on 13 June, the company announced it is reviewing its mobile strategy and, pursuant to this, it has entered into discussions with Vodafone Group and MTN Group..." says Telkom.

Telkom acting CEO Reuben September says mobile is an important pillar of the company's growth strategy and will allow it to achieve its stated business objective of fixed-mobile convergence. "As part of this review, we have entered into talks with Vodafone Group and MTN Group."

Meanwhile, MTN also issued a cautionary yesterday afternoon, confirming it is in talks with Telkom, "which may or may not result in a transaction involving certain assets of Telkom".

ITWeb will publish a follow-up later this morning.