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UPDATE 2-China Mobile eyes S.Africa but has not bid for MTN

Thu May 8, 2008 1:52pm IST
 
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By Vinicy Chan

HONG KONG, May 8 (Reuters) - China Mobile Ltd (0941.HK: Quote, Profile, Research) (CHL.N: Quote, Profile, Research), the world's biggest mobile carrier, said it is interested in the South Africa market but has not bid for MTN (MTNJ.J: Quote, Profile, Research), the subject of takeover interest by India's Bharti Airtel (BRTI.BO: Quote, Profile, Research).

"China Mobile has not joined the MTN bidding, but we are interested in the South African market and we are looking at various opportunities for entering that market," Chief Executive Wang Jianzhou told reporters on Thursday following the firm's annual general meeting.

He declined to elaborate on the firm's intentions.

Bharti and MTN Group said on Monday that they were in talks which may or may not lead to a deal.

China Mobile, UK-based giant Vodafone (VOD.L: Quote, Profile, Research) and India's Reliance Communications (RLCM.BO: Quote, Profile, Research) were cited by the Financial Times this week as also likely to be interested in MTN, which operates in Africa and the Middle East and has a market value of $40 billion.

Marvin Lo, an analyst with Daiwa Institute of Research in Hong Kong, said that if China Mobile were to bid for MTN, it would likely do so at the parent company level -- an approach often taken by Chinese state-controlled companies when making acquisitions.

Those assets are then eventually injected into the listed units of state enterprises.   Continued...

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