Vodafone is reportedly in talks with South African encumbent Telkom to buy a greater stake in Vodacom, the 50-50 joint venture mobile operator the two companies have. “A Vodafone spokesman confirmed that the group was interested in boosting its stake in Vodacom, which accounts for nearly 60 per cent of the South African mobile market. Analysts said that a deal was likely to be worth about 70 billion rand (US$9.738 billion), although the two sides are thought to be wrangling over a price” reports Times Online. Vodacom is profitable — Vodafone’s half-share brought in about US$654 million in profit last year — and has operations in South Africa, Mozambique, Lesotho, the Democratic Republic of Congo and Tanzania. If that happens, MTN — the biggest phone group in sub-Saharan Africa, may take a stake in Telkom by buying the 38 percent owned by the South African government, which would give it a foothold in fixed-line services and a greater presence in South Africa.
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