Business
South Africa’s Telkom stock surge on nationalization report
Earlier this month, the cabinet turned down KT Corp’s US$385 million offer for a stake in the company, saying it was a strategic asset in its plan to roll out internet services to all South Africans by 2020.
The deal with the South Korean firm 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 ANC view as an arm of government.
The ANC last year tried unsuccessfully to roll back approval for Wal-Mart Stores Inc’s US$2.4 billion acquisition of retailer Massmart.
Telkom, which last week posted a one-third drop in full-year profit and suspended dividend payments for first time since 2003, has been hit by hefty start-up costs at its new mobile arm and falling sales from its mainstay fixed-line phone business.
