Telkom-BCX hearings delayed...

[kaspaas]

http://www.fin24.co.za/articles/com...px?Nav=ns&lvl2=comp&ArticleID=1518-24_2093010

Telkom, BCX hearings postponed
02/04/2007 16:01


Johannesburg - Antitrust hearings into the proposed acquisition of IT outsourcing firm Business Connexion (BCX) by fixed line telephone operator Telkom were postponed on Monday, delaying the deal further.

The Competition Tribunal said it had postponed the hearings after the its chairperson, David Lewis, was taken to hospital with a back injury.

Telkom said last March that it intended to buy BCX for R2.43bn, but the deal has been dogged with delays after it ran into opposition from the Competition Commission as well as competitors.

The Competition Tribunal has the final say in anti-trust matters in South Africa. The tribunal hearings were scheduled to continue on Monday until May 18, but will now end on June 1.

Telkom last month said it had extended the deadline for meeting conditions for the BCX acquisition to May 31 from March 15, itself an extension from December last year.

Telkom announced its bid for BCX in March last year, but the Competition Commission blocked the deal on grounds it would hamper competition.

Lawyers for the commission and the Association of Internet Service Providers told an antitrust hearing last month that Telkom's bid would give it too much control of the corporate market for phone and IT services.

At 14:43 GMT, Telkom shares traded flat at R166, with the JSE Top 40 index up a marginal 0.9%. BCX was also unchanged at R6.90 compared with a 0.9% increase in the JSE All Share index.

 

[Franna]

Good - must be the first time a delay causes a disadvantage to Hellkom...

 

[rpm]

Indeed. Telkom are masters at delaying these processes...this time they, and more so BCX, suffers.

 

[BTTB]

Busconnex Share price surges 5%

Indeed. Telkom are masters at delaying these processes...this time they, and more so BCX, suffers.

Busconnex shares have lost -15% of their value since March last year, although it picked up 5% today.
Why it picked up 5% today after the news that the hearing has been delayed tells me that something is up and someone has inside information or perhaps some investors taking a chance that the deal is going to go through.

Don't be surprised if this deal does go through as I don't think that 5% surge in the share price today is just speculating investors.