![\"\"](\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2019\/11\/Telkom-share-price-1.jpg\")
<\/a><\/p>\nTelkom SA SOC Ltd. shares extended their slump in Johannesburg after its acquisition target, Cell C Pty Ltd., agreed to an extended roaming deal with rival MTN Group Ltd.<\/p>\n
Telkom stock has sunk to its lowest in almost a year and is down 17% in the past four days. The company said Nov. 15 it was in talks to buy Cell C and combine South Africa\u2019s third and fourth-largest mobile-phone companies.<\/p>\n
Monday\u2019s MTN-Cell C news \u201creduces visibility on Telkom\u2019s offer,\u201d Citigroup Inc. analysts including Dilya Ibragimova wrote in a note.<\/p>\n
\u201cThe timing of the announcement may signal that Cell C may not be entirely happy with the terms of Telkom\u2019s offer,\u201d the Citi analysts wrote.<\/p>\n
A consolidation in the South African market from four to three players is not Citi\u2019s base case, they wrote.<\/p>\n
The news \u201cdefinitely makes the potential acquisition by Telkom much more complicated as it further entrenches MTN\u2019s reach over the Cell C user base, and forces Telkom to potentially pay a higher future price should there be an acquisition of Cell C, which is already a concern in the market as Telkom may not have the balance sheet capacity to take on the acquisition,\u201d Lester Davids, an analyst at Johannesburg-based Unum Capital, said by email.<\/p>\n
Telkom dropped 2.1% Monday to the lowest since Nov. 26, 2018. Cell C\u2019s 45% shareholder Blu Label Telecoms Ltd. jumped 8%. MTN fell 0.3%, while cross-town rival Vodacom Group Ltd. lost 1.5%.<\/p>\n
Telkom shares extended their slump after its acquisition target, Cell C, agreed to an extended roaming deal with rival MTN.<\/p>\n","protected":false},"author":341034,"featured_media":307598,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sma_x_autopost_status":"idle","_sma_x_autopost_error":"","_sma_x_post_id":"","_sma_facebook_post_id":"","_sma_instagram_post_id":"","_sma_threads_post_id":"","_sma_x_attempts":0,"footnotes":""},"categories":[19],"tags":[355,35,42,109],"class_list":["post-328165","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-cell-c","tag-headline","tag-mtn","tag-telkom"],"_links":{"self":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/328165"}],"collection":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/users\/341034"}],"replies":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/comments?post=328165"}],"version-history":[{"count":1,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/328165\/revisions"}],"predecessor-version":[{"id":328169,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/328165\/revisions\/328169"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media\/307598"}],"wp:attachment":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media?parent=328165"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/categories?post=328165"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/tags?post=328165"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}<\/a><\/p>\nNow read: The scary message hidden in Telkom CEO Sipho Maseko\u2019s comments<\/a><\/h3>\n","protected":false},"excerpt":{"rendered":"