Sunday, May 17, 2009

SA Government joins Vodacom in opposing interdict


The African National Congress lead government has joined Vodacom and Telkom in opposing an urgent interdict brought against them by the Congress of South African Trade Unions (Cosatu) and the Independent Communications Authority of South Africa (Icasa).

The order aims to prevent Monday’s merger between Vodacom and British based communications giant Vodafone.

Government said it signed an agreement with Vodafone in which it stated it would support the transaction while lawyers representing Telkom,Vodacom and government were united in opposing the interdict. 


They have questioned what power Icasa has to review the business deal when the communications authority stated in April that Vodacom did not need its permission.


They also questioning the trade union’s 11 hour action asking why the trade federation did not initiate court proceedings when it found out about the merger last month.


Meanwhile, Icasa said it was concerned about legal issues that it claims may arise from Vodafone buying Telkom shares in Vodacom but all three legal teams, opposing the interdict, said they want the application dismissed demanding that Cosatu and Icasa foot the bill.

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