SA Govt may consider selling Telkom Stake

the government could sell if it was confident it would not hurt efforts to bring down tariffs and roll out communications to the poor.
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Say what?
In what way has government owning Telkom shares served the needs of the poor?
 
....as saying the government could sell if it was confident it would not hurt efforts to bring down tariffs and roll out communications to the poor
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I suspect that the government's shareholding is an impediment to the bringing down of tariffs as they also benefit from Telkom's profits
 
mikef said:
I suspect that the government's shareholding is an impediment to the bringing down of tariffs as they also benefit from Telkom's profits
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Not too sure of the economic validity of that statement. Lower tariffs would equal higher uptake, as well as increased economic growth rate - all benefiting government in the form of taxation and foreign investment.

But then again, I am not an economics fundi so I may be wrong.
 
Time will tell.

Perhaps they think Telkom's shares have reached their peak?

Maybe it is the constant pressure and exposure the Govt. gets on a daily basis, because of it's shareholding in the incumbent Monopoly?

How this is going to benefit the poor is another mystery?

Time will tell.
 
Yes, i agree. But whether it benefits the poor or not, it's a good thing that they are at least considering ending this conflict of interest. Sooner the better.
 
How this is going to benefit the poor is another mystery?
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Because then they are no longer shooting themselves in the foot by more strictly regulating Telkom, plus there would be all that cash available to do something usefull.
 
dominic said:
any ideas on the value of govt's stake in telkom?
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Telkom is worth about R65 Billion.
38% of that is about R24 Billion.

Enough to buy a couple of Power Stations.:)

Spamtheman said:
Because then they are no longer shooting themselves in the foot by more strictly regulating Telkom, plus there would be all that cash available to do something usefull.
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Remember that Govt. still collects taxes from Telkom either way.
 
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I got a sneaky suspicion that Gauvamint wants to sell their shares before they hire Chuck Norris to give Telkom a round-house kick in the nuts.

I think that Gauvamint is EVENTUALLY catching a wake-up that we are falling further & further behind, and don't want to be caught with all those de-valued shares when they finally force Telkom to pull their fingers out their a$$.

Just my 2c
 
I wonder who potential buyers would be... My bet is on an international buyer, perhaps AT&T - especially considering their recent buying frenzy.
 
One thing is for sure . From 2/3 Telkom shares are going down
 
kingmonty said:
I wonder who potential buyers would be... My bet is on an international buyer, perhaps AT&T - especially considering their recent buying frenzy.
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maybe telkom itself?
 
dominic said:
maybe telkom itself?
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Possible but not likely - Telkom needs to upgrade its networks to stay competitive, and the easiest (and quickest) way to get upgraded is to get this for free as part of a package deal with a good partner
 
Seems Government is now going to be backing another horse.

Sell Telkom shares to make it look like they are really all for freeing up telecommunications, but keep shares in SNO so they can still pull all the strings albeit through another incumbent.
 
Why sell a MILKCOW ???

A milkcow for dividends is not for sale, I bet yoou
 
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