/ 31 March 2008

Telkom rejects Oger Telecoms approach

Telkom said it has rejected an approach from Oger Telecoms and will not consider the sale of the group or any of its units or joint ventures without a strategic rationale.

Telkom said in a statement on Monday it had turned down the approach from United Arab Emirates-based Oger as it was not in the interest of shareholders.

Oger Telecoms, controlled by the family of late Lebanese prime minister Rafik al-Hariri, also operates in Saudi Arabia, Lebanon and Jordan, providing fixed-line, mobile and internet services.

Telkom’s board had also decided to reduce substantially its investment in Telkom Media and invest in a fixed wireless voice and data network and a mobile data network.

Talks between Telkom and cellphone operator MTN over the sale of Telkom’s fixed-line business were called off in November, also ending Telkom’s hopes of selling its Vodacom stake to joint owner Vodafone.

Telkom said talks to sell part of its mobile phone assets to British-based Vodafone, the world’s largest mobile phone company by revenue, had hinged on a successful deal to sell all or some of its fixed-line assets to mobile phone compatriot MTN. – Reuters