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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