‘SA mulls Telkom nationalisation’

091010 Telkom is before the Competiton Tribunal on Monday - fighting against the Internet Solutions charges that were referred by the competition commission last year .photo by Simphiwe Mbokazi 7

091010 Telkom is before the Competiton Tribunal on Monday - fighting against the Internet Solutions charges that were referred by the competition commission last year .photo by Simphiwe Mbokazi 7

Published Jun 19, 2012

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The South African government, a top shareholder in Telkom, could delist and nationalise the struggling telecoms operator, Business Day newspaper reported, citing a source close the communication department.

“The government is looking for a way to direct Telkom to meet its development agenda without being hampered by the rules of the JSE,” the nation's leading business daily quoted the source as saying.

Earlier this month, the government, which together with the state-run pension fund hold over 50 percent of Telkom, rejected KT Corp's $385 million offer for a stake in the company, saying the firm was a strategic asset in its plan to roll out internet to all South Africans by 2020.

The deal would have diluted the government holding to less than 50 percent.

Analysts have said the rejection of KT's offer underscored the apparent determination of the government not to cede control of a company that many in the ruling African National Congress view as an arm of government.

The ANC last year tried unsuccessfully to roll back approval for Wal-Mart's $2.4 billion acquisition of retailer Massmart.

A communication department spokesman could not be immediately reached for comment. - Reuters

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