South African telecommunications giant Telkom (TKG) said on Monday that it has noted the Competition Commission’s recommendation to the Competition Tribunal that its proposed acquisition of BCX be prohibited.
"The Competition Tribunal may or may not agree with the Competition Commission’s recommendation. Telkom continues to believe that it has a strong case and will be putting forward its case to the Competition Tribunal.
A pre- hearing is scheduled at the Competition Tribunal for 24 November 2006," it said in a statement.
In terms of the Scheme of Arrangement entered into between Telkom and the BCX shareholders, a date of 15 December was included for the conditions precedent to be fulfilled including Competition Authorities approval.
This fulfilment date can be extended by the mutual consent of the Boards of BCX and Telkom. If the fulfilment date is not extended by the mutual consent of both parties then the Scheme of Arrangement will fail and Telkom will not conclude its acquisition of BCX, it said.
A further announcement will be made in due course, it added.