Technology

Telkom`s plans: fair game or gearing up for war?

With the second network operator coming into play and promising competition, efforts to grow its business and branch into new markets are being met with some hostility.

01 May 2006

Many questions and concerns surround the proposed union between Business Connexion (BCX) and Telkom. The deal has sparked outrage amongst some industry players who have threatened to take up the matter with the Competition Commission, as well as worries about what it means for fair play in South Africa`s IT industry.

Some reports of Telkom`s purchase of the managed IT services company for 900 cents per share (equating to about R2.4-billion) construe the bid as hostile, although Telkom says it has the support of almost half the shareholders – albeit not of the BCX board of directors.

An analyst report received by Brainstorm  says the way Telkom made the purchase announcement displays hostile elements.

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