It seems like just yesterday that locally-listed cellular operator MTN was looking to eat Telkom for dinner. Or at least its fixed-line assets. Now, it looks like a bigger fish has come along and is eyeing the operator for lunch.
The big question is: Is MTN willing to lie down and be a meal for Indian group Bharti Airtel?
Of course, the old saying, "every man has his price", stands and no doubt MTN's shareholders will take the bait if it is sparkly enough. But first it has to get past MTN's board of directors.
Appetite for more
The current board and executive management team have led the company through its largest expansion programme since its inception.
Since MTN group president and CEO Phuthuma Nhleko took the helm in 2002, the company has made no less than eight acquisitions and country entries. This took the company from operations in five African countries to a presence in 21 countries across Africa and the Middle East.
This expansion programme has continually delivered on the bottom line, much to the delight of MTN's shareholders, who have seen the value of their interests skyrocket.
Despite good growth and a lot of work required to get some operations off the ground, MTN's exco has shown no desire to chew repeatedly before swallowing.
Last year, the company announced it was in discussions with Telkom. These ultimately failed, but, at the beginning of this year, it was back for more talks with the fixed-line Frankenstein. Again it walked away.
Mark of the man
I can't help but wonder whether the MTN team, having been the aggressor in so many acquisitive talks, has the right temperament to be on the other side of the dinner table.
There is no doubt that people who have been able to operate almost unilaterally for some time, find the stricture of a new boss frustrating. Add a whole new group structure and this frustration could be viewed as intolerable.
MTN's board has three executive directors: Nhleko, group COO Sifiso Dabengwa and group FD Rob Nisbet. I would imagine the board, although heavily outweighed by the 11 remaining non-executive directors, listens carefully to the men who have operational insight.
Like Yahoo's rejection of Microsoft's unwelcome bid, these "guys in the know" could say they hate the idea of a takeover and back it up with projections of the company's long-term value.
Cashing out
I can't help but wonder whether the MTN team, having been the aggressor in so many acquisitive talks, has the right temperament to be on the other side of the dinner table.
Kimberly Guest, senior journalist, ITWeb
On the other hand, an offer representing a significant premium on the going share price, could be just what is needed to get the guys to sign on the dotted line. Nhleko is heavily invested in the company, personally and through the employee share scheme Newshelf 664.
The company's management team - and employees, of course - also stand to make a killing if a "really good" offer is made.
To my mind, the premium truly will have to be significant. The nature of this beast is one that feasts, not one that stands still so the hunter can get a kill shot. There are rules as to how offers to purchase are dealt with, but these can always be "played" with, as Yahoo showed so well last week.
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