MTN Said to Explore Telkom Purchase to Challenge Vodacom

MTN Group Ltd. is exploring whether to pursue an acquisition of a majority stake in landline provider Telkom SA SOC Ltd. to challenge Vodacom Group Ltd.’s dominance in South Africa’s telecommunications market, according to people familiar with the matter.

MTN has held exploratory discussions in recent months about a possible offer for Pretoria-based Telkom, said two of the people, asking not to be identified because the deliberations are private. A bid isn’t imminent as a final decision hasn’t been made. With a market value of $3.4 billion and about 40 percent owned by the state, Telkom controls South Africa’s largest landline network and also sells mobile-phone packages.