South African fixed-line operator Telkom’s shares plummeted more than 10% in early trade on Tuesday on news that the negotiations it was in with cellphone operator MTN had terminated.
In March, Telkom made an announcement that it was reviewing its mobile strategy, and in September it released a cautionary announcement advising shareholders that it had entered into discussions with Vodafone and MTN. The talks related to Telkom’s assets.
Telkom currently has a 50% holding in cellphone operator Vodacom. United Kingdom-based Vodafone owns the other half.
An hour after the JSE opened on Wednesday, Telkom’s share price plummeted R16,65, or 10,31%, to R144,80, just off its intra-day low of R143,50.
However, MTN’s share price rallied R4,70, or 3,91%, to R125. — I-Net Bridge