Telkom slump deepens after Cell C signs roaming pact with rival
JOHANNESBURG – Telkom SA SOC Ltd. shares extended their slump in Johannesburg after its acquisition target, Cell C Pty Ltd., agreed to an extended roaming deal with rival MTN Group Ltd.
Telkom stock has sunk to its lowest in almost a year and is down 17% in the past four days. The company said Nov. 15 it was in talks to buy Cell C and combine South Africa’s third and fourth-largest mobile-phone companies. Monday’s MTN-Cell C news “reduces visibility on Telkom’s offer,” Citigroup Inc. analysts including Dilya Ibragimova wrote in a note.
“The timing of the announcement may signal that Cell C may not be entirely happy with the terms of Telkom’s offer,” the Citi analysts wrote. A consolidation in the South African market from four to three players is not Citi’s base case, they wrote.
Source: iol.co.za
