Telkom/BCX hearings postponed

By Damaria Senne for Telkom
Johannesburg, 03 Apr 2007

The Competition Tribunal hearings into the proposed merger between Telkom and Business Connexion (BCX) have been postponed until 18 May.

The postponement is due to the hospitalisation of the presiding member of the panel and chairman of the Competition Tribunal, David Lewis, who has suffered a back injury.

The hearings, due to end on 16 April, will now conclude on 1 June, the tribunal says.

BCX deputy CEO Benjamin Mophatlane says the postponement is not expected to impact on Telkom's capacity of fulfil the final condition of the merger, which is to win the approval of the competition authority. The fixed-line utility has until 31 May to fulfil this condition.

"BCX wishes Lewis a speedy recovery, so the matter can be finalised on schedule," he says.

Mophatlane says Lewis is expected to be ready to get back to work within four to six weeks. BCX has not contemplated its options should Lewis's recovery take longer, he adds.

BMI-TechKnowledge analyst Richard Hurst notes the Telkom/BCX merger process needs to be finalised as soon as possible to offset negative perceptions about BCX. He adds that additional delays could hurt BCX further and force the BCX board to reconsider its options.

Telkom says it remains committed to the deal and will "go the full mile" to ensure its completion.