BIZCHINA / Biz Media Digest
IT:China Telecom not bidding for MTN
(Reuters)
Updated: 2006-11-17 13:49
China Telecom Corp Ltd denied on Thursday a report it might buy
sub-Saharan Africa's biggest cell phone operator MTN.
"We wish to deny the news report of China Telecom buying MTN," a China
Telecom spokesman wrote in an emailed reply to a query from Reuters.
The company was responding to an article in a South African newspaper
that China Telecom could be interested in bidding for MTN, which runs
networks in risky but high-growth markets in Africa and the Middle East.
Shares in MTN rose 6 percent in three days this week as speculation it
could become a takeover target swirled.
China Telecom's parent was in talks to buy emerging market mobile
operator Millicom earlier this year, according to sources familiar with
the matter. But the talks collapsed, adding to a string of aborted
approaches by China Mobile to firms from India to Uzbekistan.
China Telecom is China's biggest fixed-line operator. The world's most
populous nation has encouraged Chinese companies to expand abroad, and
many have already pushed into the world's poorest continent, mainly in
construction and mining.
MTN declined to comment on Wednesday on reports it may become a takeover
target as operators scramble for a foothold in Africa, where mobile phone
use has exploded due to patchy fixed-line infrastructure.
Chinese firms made overseas acquisitions worth $9.18 billion last year,
more than double the $3.8 billion of 2004, according to Dealogic.
MTN shares closed at 74.99 rand on Wednesday.
(For more biz stories, please visit Industry Updates)
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