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Telkom talks still deadlocked

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Telkom is still locked in discussions with both Vodafone, over the acquisition of Telkom's stake in Vodacom, and Mvelaphanda, over the acqusition of the rest of Telkom.

The telecommunications operator renewed its cautionary statements yesterday, stating the the talks with Vodafone are still ongoing.
Since any deal over the rest of the group's shares hinges on the outcome of the Vodafone talks, any sale of Telkom shareholding is also still in limbo.
Vodafone has made an offer to acquire a portion of Telkom's stake in Vodacom, a deal which would require Telkom to unbundle the rest of its stake to Telkom shareholders.
Hinging on this deal is an offer from a consortium comprising Mvelaphanda Holdings, affiliated funds of Och-Ziff Capital Management Group and other strategic funders submitted to Telkom in June.
According to this, the consortium is considering making an offer for the entire issued share capital of Telkom subject to a number of pre-conditions including the unbundling of the Vodacom shares.