etisalat evaluates MTN bid option

Cairo/Singapore: Emirates Telecommunications Corp. (etisalat) said on Monday it is evaluating a possible bid for South Africa's MTN, which is also a potential target of India's top mobile operator.

etisalat chairman Mohammad Omran said his company was looking at MTN, Africa's largest mobile phone operator, as it seeks to boost revenue from the continent to at least a quarter of total revenue within four years.

"We are always looking for expansion in Africa," Omran told reporters at a telecoms conference in Cairo. "We are evaluating MTN, among other companies.

"I see within three to four years that revenue from Africa will not be less than 25 per cent," Omran said. He did not give further details about a possible bid for MTN.

MTN, with a market value of around $36 billion and with 68.2 million subscribers in 21 countries in Africa and the Middle East, has long been the target of takeover speculation as mobile phone companies seek to expand in Africa.

India's Bharti Airtel and MTN said this month they were in talks that may or may not lead to a deal.

Indian bid

Media reports have said Bharti is eyeing a stake of 51 per cent at a value of around $19 billion, which would create the world's sixth-largest mobile company with 130 million subscribers in more than 20 countries.

A source familiar with the situation told Reuters on Monday Singapore Telecommunications Ltd is actively involved in potential takeover talks between Bharti and MTN.

The source said it was premature to speculate if SingTel - Bharti's largest shareholder with a more than 30 per cent stake - would provide any form of financial support to Bharti for a bid for MTN as the deal was evolving.

SingTel, southeast Asia's largest phone company, declined to comment.

The Asian Wall Street Journal, quoting an unidentified source, said yesterday that Bharti was considering raising its offer to around 175 South African rand ($22.84) a share for control of MTN. It said an official bid could come this week.

MTN shares traded up 3.3 per cent at 158.35 rand at 1225 GMT.

China Mobile, the world's biggest mobile carrier, has said it is interested in the South Africa market, but has not bid for MTN.