Bid to stop Vodacom deal delayed

Johannesburg - A South African court has delayed judgement on a union bid to stop Vodafone's planned $2.5bn purchase of a 15% stake in Vodacom from Telkom, the union said on Tuesday.

The Communication Workers Union (CWU) said the Pretoria High Court postponed taking a decision on the matter until April 30.

Telkom has agreed to meet with the CWU on Thursday to discuss the matter, the union said, adding it wanted Telkom to explain how it would sustain its business after shedding its 50% stake in Vodacom and to ensure it would not cut jobs.

Telkom is selling 15%of Vodacom to joint owner Vodafone for R22.5bn and is unbundling the rest to its shareholders.

Vodafone, which already owns 50%of Vodacom, wants to use the South African firm to expand in Africa, which still has major growth potential.

Vodacom accounted for more than 40% of Telkom's first-half revenue and some investors are worried the firm will struggle without the mobile unit.

Telkom spokesman Ajith Bridgraj confirmed the matter would be heard on Thursday next week, but declined further comment.

Vodacom will be listed on the Johannesburg stock exchange on May 18. Telkom shares fell 2.6% to 103.99 rand by 15:36, lagging a weaker JSE Top-40 index of blue-chip stocks.

- Reuters