A shopper walks past a Telkom shop at a mall in Johannesburg. Cell C has dashed Telkom's hopes of owning the debt-laden firm.Telecoms firm Telkom SA said on Friday its takeover bid for Cell C had been rejected, a move that comes after its larger but troubled rival expanded a roaming agreement with African giant MTN Group.This month the country's number four carrier made another approach as Cell C’s debt woes raised questions over how it would survive.
“Telkom has received written notice from the Cell C board of directors rejecting its non-binding proposal,” Telkom, which is 40% owned by the state, said in a statement. “The Telkom Board continues to believe the offer is a compelling proposition that would have created significant value for all stakeholders including Telkom’s shareholders.” Cell C, the nation’s number three carrier and majority owned by Blue Label Telecoms, confirmed it had declined the offer.