South African telecom major MTN, which failed thrice to forge alliance with Indian players in recent years, today said it is in talks for a new potential transaction with an undisclosed company.
Going by media reports, MTN is talking to Orascom Telecom for acquiring the Egyptian firm's African mobile phone business.
"Shareholders are advised that the company has entered into discussions, the full impact of which may have a material effect on the price of the company's securities. These discussions may or may not lead to any transaction," MTN said in a regulatory filing.
British daily 'Financial Times' has reported that MTN is in talks with Orascom Telecom about buying the Cairo-based firm's African mobile phone businesses.
Since 2008, MTN failed thrice to strike a deal with Indian players.
MTN and India's Bharti Airtel failed twice to reach at a transaction. The latest one was in 2009, when the two firms' talks for a $23 billion merger deal collapsed, which otherwise would have created one of the world's largest telecom players.
In 2008, talks between MTN and Indian entity Reliance Communications for a potential deal did not materialise.
Last month, Bharti snapped up the African operations of Kuwait-based Zain in a $10.7 billion-deal, paving the way for the Indian firm's entry into the African market.
Quoting people familiar with the situation, the 'Financial Times' said that talks between MTN and Orascom, had begun as discussions about the South African company buying Orascom's Algerian mobile operator but expanded to include most of its African businesses.
"MTN's move on Orascom, which has a market capitalisation of $7 billion, underlines how the Johannesburg-listed company is still hunting for acquisitions after three failed attempts to combine with Indian mobile operators," the report noted.
In its filing today, MTN has also advised shareholders to exercise caution when dealing in the firm's securities until a further announcement is made.
