Vodafone denies in talks with S.Africa's MTN

Vodafone denies in talks with S.Africa's MTN


JOHANNESBURG (Reuters) - Vodafone Group (VOD.L) denied on Tuesday a report it had had discussions with South African-based mobile phone group MTN about acquiring a stake in its international operations.

"We have had no contact," a Vodafone spokesman told Reuters.

South Africa's Sunday Times reported at the weekend that Vodafone, the world's largest mobile phone company by revenue, engaged MTN in pursuit of a multi-billion rand share after the government blocked it from purchasing a controlling stake in rival local phone operator Vodacom .

MTN also quashed rumours that Vodafone is to buy a stake in the company. MTN shares had jumped over 4 percent earlier on the report that Vodafone was seeking a stake.

"The MTN Group can confirm that there is no basis for speculation about Vodafone buying a stake in MTN," said MTN spokeswoman Nozipho January-Bardill.

Analysts said the rumours of possible talks were not in line with MTN's aggressive acquisition spree in emerging markets.

"It doesn't stack up with what they're (MTN) saying publicly ... I can't see anything immediately happening," a Johannesburg-based analyst said, adding that mobile telephone operators are always talking to each other, but not necessarily over acquiring stakes.

MTN unveiled a 17 percent rise in 2007 adjusted headline earnings per share last week and said it would boost its subscribers by a third this year as a foray into Iran pays off.

MTN said its customer base swelled by 53 percent to 61.4 million last year, helped by a strong performance in Iran, and forecast an extra 21.8 million subscribers in 2008.

"It's probably too early for them (MTN) to sell ... We thought down the line it would be best for Vodafone ... to take over premium assets in Africa where MTN is dominant," an analyst said.

The company is seeking to accelerate growth in its core European markets with greater exposure to faster-growing emerging markets.

REUTERS