Telkom says in talks with Vodafone and MTN

South Africa's Telkom (TKGJ.J: Quote, Profile , Research) said on Monday it was in talks with Britain's Vodafone (VOD.L: Quote, Profile , Research) and MTN (MTNJ.J: Quote, Profile , Research), sparking talk it wants to sell its fixed-line business and its stake in mobile phone operator Vodacom.

Telkom gave no further details. Vodafone and MTN -- sub-Saharan Africa's biggest mobile phone operator -- said separately the talks were at a "very preliminary stage".

"We've said before that we are interested in increasing our stake in Vodacom," Vodafone spokesman Mark Percy said. Vodafone and Telkom jointly own Vodacom, South Africa's top mobile phone operator.

Telkom shares rose as much as 10.68 percent, before closing 8.39 percent firmer at 190.99 rand. MTN fell 2.57 percent to 106 rand.

The Sunday Times reported at the weekend Telkom was close to selling its 50 percent stake in Vodacom to Vodafone. It also said MTN and a private consortium were bidding to acquire Telkom's fixed-line assets.

"We view the news positively and await the outcome of the discussions eagerly," said Brian Molefe, the chief executive of Public Investment Corporation, which owns close to 15.7 percent of Telkom.
Source : http://today.reuters.co.uk