Takeover Battle Underway For Africa’s Largest Mobile Phone Operator

May 14, 2008 – 7:51 am

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The largest mobile phone operator in Africa is in play, and a number of international firms are eyeing the business. African’s use cell phones almost exclusively, and MTN has more customers in the region than anyone else. This makes them attractive for a takeover.

The battle for Africa’s largest cell phone operator, MTN is heating up. First, India’s leading cell phone company, Bharti Airtel, announced it was in early stage discussion with MTN on May 5. Nearly a week later, media reports claimed the world’s largest mobile phone company, Vodafone was planning to enter the fray, potentially offering as much as $39 billion for the African wireless operator.

On May 12, Vodafone, which already owns 50% of South Africa’s leading cell phone player, ruled out such a bid. But a potential new contender has emerged: the United Arab Emirates’ Emirates Telecommunications Corp., Etisalat.

Reuters reports that at a telecoms conference in Cairo Etisalat Chairman Mohammad Omran admitted his company is looking at MTN to expand in Africa.

U.S. and European cell phone markets are both saturated and stagnant, so many companies are expecting growth in emerging markets, like Africa. MTN is a huge prize, and the winner might just be dominant in Africa for years to come.

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