Friday, June 29, 2007

Telkom/BCX is a no go

The long awaited competition tribunal, looking into the Telkom / BCX merger, has finally made a decision. They have denied the merger between the telecoms provider and the outsourcing giant. According to BCX they believed they had a 50/50 chance, obviously the wrong 50 was chosen.

The findings show some hope for the IT and telecoms sector in this country. If the deal had gone through Telkom would further increase their monopoly on the IT sector. Unfortunately for Peter Watt, CEO of BCX, the golden handshake he was probably expecting never materialised.

Telkom did mention that if the deal did not go through they would look for an international IT acquisition. It will be interesting to see who they approach.

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