0
General

France Telecom threatens to pull out of Telkom Kenya

Tuesday 13 April 2010 | 10:53 CET | News
France Telecom and the Kenyan government have ended the first phase of negotiations concerning the French group's USD 385 million claim over Telkom Kenya, Kenya's Daily Nation reported. France Telecom is threatening to pull out of the company, in which it has a 51 percent stake, if problems are not addressed soon, sources familiar to the negotiations said. France Telecom said it was not able to trace some assets that were on the books of Telkom Kenya when the French company bought its stake from the government in 2007. Sources told the EastAfrican daily that in addition to the original USD 385 million claim, an additional claim of USD 300 million has been lodged to fund a five-year business plan. This is based on the grounds that a multimillion shilling supplier contract that Telkom Kenya's management signed with Rapid Communications was concluded just weeks before the French took over, denying France Telecom a chance to negotiate a deal under whose terms it would inherit future debt. Kenya's position in the negotiations is that France Telecom was given ample time and opportunity to conduct due diligence before committing to buy Telkom Kenya. Kenya's parliament had allowed the government to absorb nearly USD 1 billion worth of Telkom Kenya debts to ready it for sale to the private sector. In what now appears as an admission that France Telecom is unable to turn around Orange Kenya in the face of Safaricom's market dominance, the company is calculating that it will need a capital injection of over USD 266 million in the next three years to expand and improve its network. The government still owns 49 percent of Orange Kenya.

Categories: General
Companies: France Telecom / Orange Kenya / Safaricom
Countries: France / Kenya
::: add a comment

Add comment

We welcome comments that add value to the discussion. We attempt to block comments that use offensive language or appear to be spam, and our editors frequently review the comments to ensure they are appropriate. If you see a comment that you believe is inappropriate to the discussion, you can bring it to our attention by using the report abuse links. As the comments are written and submitted by visitors of the Telecompaper website, they in no way represent the opinion of Telecompaper.






top five brands accounted for 63.4% of total virtual mobile market
Netherlands  |  2014 Q3

Calendar   /   Industry Events

26 Jan Microsoft fiscal Q2
26 Jan Texas Instruments Q4 2014
27 Jan Ericsson Q4 2014
27 Jan Apple fiscal Q1
27 Jan AudioCodes Q4 2014
27 Jan Juniper Networks Q4 2014
27 Jan Zhone Technologies Q4 2014
27 Jan Freescale Semiconductor Q4 2014
27 Jan AT&T Q4 2014
27 Jan Customer Experience Management in Telecoms Global Summit
28 Jan Qualcomm fiscal Q1
28 Jan Fortinet Q4 2014
28 Jan STMicroelectronics Q4 2014
28 Jan Extreme Networks fiscal Q2
28 Jan TE Connectivity Q4 2014
28 Jan Shoretel fiscal Q2
28 Jan TMT Finance & Investment ASIA 2015
28 Jan 4G Mobile Vas India Summit & Expo 2015
29 Jan TeliaSonera Q4 2014
29 Jan NEC fiscal Q3
29 Jan NTT Docomo fiscal Q3
29 Jan Riverbed Technology Q4 2014
29 Jan JDSU Q4 2014
29 Jan LG Electronics Q4 2014
29 Jan Samsung Electronics Q4 2014
29 Jan Alibaba Q4 2014
29 Jan DSP Group Q4 2014
29 Jan PMC-Sierra Q4 2014
29 Jan Lantronix fiscal Q2
29 Jan Harmonic Q4 2014
::: More Calendar Items