Cell C Creditors Hire Moelis, Lawyers to Push for Telkom Takeover

Cell C Pty Ltd.’s creditors aren’t giving up on a takeover offer from rival Telkom SOC Ltd., which South Africa’s third-largest mobile-network operator rejected last week, Bloomberg News reported. Senior debt holders have hired investment-banking firm Moelis & Co. and corporate lawyers Linklaters LLP and DLA Piper LLP to lobby for the Telkom proposal, people familiar with the matter said. They could block Cell C from pursuing an alternative recapitalization plan by forcing the carrier into liquidation or business rescue, said the people, asking not to be identified because talks are ongoing. A takeover by Telkom would return about 86 cents on the rand to lenders, while banks may have to take a haircut if Cell C goes ahead with a transaction involving local investment company Buffet Group, they said. Read more