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13499
Wed, 07/23/2008 - 11:48
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M.T.N. may look at other Indian telcos: Reports
Johannesburg, Jul 23 (PTI) Speculations are rife in the local media about M.T.N's. next move after the failure of talks with two Indian entities R.COM. and Bharti Airtel for a possible merger, with some saying that the South African telecom major might now target other telecom operators fromIndia.
Besides, M.T.N. might pursue a potential deal with companies from other emerging markets in Latin America and Asian nations like Pakistan and Bangladesh, media reports saidhere.
The door is not yet shut on M.T.N. in India as the country is "a huge market to walk away from," a report in financial daily Business Report said, quoting an analyst fromresearch firm I.D.C.
The analyst added that "India had other small and regional operators that would make suitable targets for M.T.N." M.T.N. is likely to pursue other operators in India, after its talks with Reliance Communications (R.COM.) to create a 70-billion dollar telecoms company were cancelledFriday, Business Report said.
M.T.N. began exclusive talks with billionaire Anil Ambani-led Reliance Communications in the last week of May after the South African firm's discussions with another Indianplayer Bharti Airtel fell apart.
However, R.COM. and M.T.N. called off their talks citingcertain regulatory and legal issues last Friday.
Another South African financial daily Business Day quoted an M.T.N. spokesperson as saying that "M.T.N. will always look at what we call value-enhancing opportunities for shareholders and for the company, and that's what we will continue to do." As part of our vision we want to be a leading provider of telecoms services in emerging markets," the spokespersonadded.
M.T.N. did not have a preference on whether it would rather make the acquisitive moves or be on the receiving end of potential bids... It's both ways. MTN is being looked at as a successful operator by others and we are always looking at opportunities on our side. We don't have a favourite strategy of those two at this stage," the M.T.N. executive toldBusiness Day.
The report quoted a Frost and Sullivan analyst as saying that it was not surprising that the two failed deals have notdented M.T.Ns. desire for acquisitive growth.
"M.T.N. will continue to consider other possible suitors and earmark possible targets... We believe M.T.N. should continue its pursuit of emerging markets. The company has proven that it is truly an expert in this type of market," theanalyst said.
The Business Report writeup quoted an analyst from CadizAsset Managers as saying there are other operators that M.T.N.
can look at, "but they are much smaller in size" relative toR.COM. and Bharti Airtel.
There are also speculations that the South African telecom might also consider deals in Pakistan, Bangladesh andother emerging economies in South America.
Another South African daily The Times quoted an analyst from Frost & Sullivan as saying that M.T.N's. next big area ofinterest could be Latin America.
"Its market characteristics are similar to those of Africa, the mobile market has demonstrated robust growth, and there are operators present that could be good targets or partners going forward. America Movil is one possibility," theanalyst told the daily.
Further, the report quoted the analyst and noted that M.T.N. has shown it's very protective of the brand and corporate culture, adding that "retaining these these will continue to be non-negotiable in any negotiations." MORE PTI
Besides, M.T.N. might pursue a potential deal with companies from other emerging markets in Latin America and Asian nations like Pakistan and Bangladesh, media reports saidhere.
The door is not yet shut on M.T.N. in India as the country is "a huge market to walk away from," a report in financial daily Business Report said, quoting an analyst fromresearch firm I.D.C.
The analyst added that "India had other small and regional operators that would make suitable targets for M.T.N." M.T.N. is likely to pursue other operators in India, after its talks with Reliance Communications (R.COM.) to create a 70-billion dollar telecoms company were cancelledFriday, Business Report said.
M.T.N. began exclusive talks with billionaire Anil Ambani-led Reliance Communications in the last week of May after the South African firm's discussions with another Indianplayer Bharti Airtel fell apart.
However, R.COM. and M.T.N. called off their talks citingcertain regulatory and legal issues last Friday.
Another South African financial daily Business Day quoted an M.T.N. spokesperson as saying that "M.T.N. will always look at what we call value-enhancing opportunities for shareholders and for the company, and that's what we will continue to do." As part of our vision we want to be a leading provider of telecoms services in emerging markets," the spokespersonadded.
M.T.N. did not have a preference on whether it would rather make the acquisitive moves or be on the receiving end of potential bids... It's both ways. MTN is being looked at as a successful operator by others and we are always looking at opportunities on our side. We don't have a favourite strategy of those two at this stage," the M.T.N. executive toldBusiness Day.
The report quoted a Frost and Sullivan analyst as saying that it was not surprising that the two failed deals have notdented M.T.Ns. desire for acquisitive growth.
"M.T.N. will continue to consider other possible suitors and earmark possible targets... We believe M.T.N. should continue its pursuit of emerging markets. The company has proven that it is truly an expert in this type of market," theanalyst said.
The Business Report writeup quoted an analyst from CadizAsset Managers as saying there are other operators that M.T.N.
can look at, "but they are much smaller in size" relative toR.COM. and Bharti Airtel.
There are also speculations that the South African telecom might also consider deals in Pakistan, Bangladesh andother emerging economies in South America.
Another South African daily The Times quoted an analyst from Frost & Sullivan as saying that M.T.N's. next big area ofinterest could be Latin America.
"Its market characteristics are similar to those of Africa, the mobile market has demonstrated robust growth, and there are operators present that could be good targets or partners going forward. America Movil is one possibility," theanalyst told the daily.
Further, the report quoted the analyst and noted that M.T.N. has shown it's very protective of the brand and corporate culture, adding that "retaining these these will continue to be non-negotiable in any negotiations." MORE PTI
