On The Money - In Brief

Mergers, Acquisitions and Financial Results

- Communications minister Ivy Matsepe-Casaburri today said she agreed with the regulator’s recommendation that neither Goldleaf Trading nor Optis Telecommunications be awarded a stake in SA’s second fixed-line telephone company. In doing so, she may have triggered a legal battle reminiscent of that which delayed the third cellular licence. Goldleaf immediately said it would turn to the courts to halt the selection process and it could demand a full judicial review of the process to date.

- There is speculation that Johnnic will sell or unbundle its 37% stake in MTN, whose value has been increased by the SA Government’s decision to allow it greater levels of external financing.

- South Africa’s government and international equity partners SBC and Telekom Malaysia have agreed not to sell their shares in phone utility Telkom for six months after it is listed, in what corporate financiers said on Thursday was standard agreement.