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.


Free Headlines in your E-mail

Every day we send out a free e-mail with the most important headlines of the last 24 hours.

Subscribe now

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.






39%
Ziggo grows to 39% of broadband revenues
Netherlands  |  2015 Q3

Calendar   /   Industry Events

08 Feb GigOptix Q4 2015
08 Feb MaxLinear Q4 2015
08 Feb Avaya fiscal Q1
09 Feb Opera Software Q4 2015
09 Feb KDDI fiscal Q3
09 Feb Nuance Communications fiscal Q1
09 Feb Akamai Technologies Q4 2015
09 Feb Calix Q4 2015
09 Feb Telekom Austria Q4 2015
09 Feb Allot Communications Q4 2015
09 Feb Limelight Networks Q4 2015
09 Feb Com Hem Q4 2015
09 Feb Iot Data
09 Feb ТB Forum powered by Intersec 2016
10 Feb Telenet Q4 2015
10 Feb Zynga Q4 2015
10 Feb Twitter Q4 2015
10 Feb America Movil Q4 2015
10 Feb ARM Q4 2015
10 Feb Softbank fiscal Q3
10 Feb Cisco fiscal Q2
10 Feb CenturyLink Q4 2015
10 Feb Telenor Q4 2015
10 Feb Millicom Q4 2015
10 Feb IoT Tech Expo
11 Feb Nokia Q4 2015
11 Feb Brightcove Q4 2015
11 Feb Redknee Solutions fiscal Q1
11 Feb Turk Telekom Q4 2015
11 Feb Vonage Q4 2015
::: More Calendar Items