=DJ New Zealand's Telecom: Was Technical Partner In Nitel Bid

   By Robb M. Stewart
   Of DOW JONES NEWSWIRES

JOHANNESBURG (Dow Jones)--Telecom Corp. of New Zealand (NZT) Monday confirmed it had agreed to provide services to a consortium bidding to take part in the privatization of Nigerian Telecommunications Ltd., or Nitel, but said it wouldn't provide any capital.

Telecom, through its Telecom New Zealand International unit, had agreed to provide services which allow voice calls to other countries to Nitel if African consortium Brymedia was successful in its bid for a controlling stake in the Nigerian telecommunications operator, spokesman Ian Bonnar told Dow Jones Newswires.

"Telecom is in no way involved in any bid for ownership of Nitel, or the provision of any capital for the bid," Bonnar said.

Nigeria's Bureau of Public Enterprises in a statement Feb. 16 selected the New Generation Consortium as the preferred bidder for a 75% stake in Nitel and its mobile subsidiary, M-Tel. It said New Generation had offered $2.5 billion, much higher than other offers including the $551 million bid from the Brymedia consortium.

South African phone company Telkom SA Ltd. (TKG.JO) has denied participating in the bidding for Nitel or any part of the Nigerian company. In an interview last week, a spokesman said there was no truth to a statement by the Bureau of Public Enterprises Telkom was part of a consortium which had submitted an offer for control of Nitel.

According to the Nigerian agency, Telkom was part of a group known as AFZI/Spectrum Consortium which offered $375.5 million for control of Nitel.

-By Robb M. Stewart, Dow Jones Newswires; +27 11 783 7848; robb.stewart@dowjones.com

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(END) Dow Jones Newswires

February 22, 2010 08:44 ET (13:44 GMT)

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