SHOOT: South Africa is certainly getting shots in the arm right when it needs them.
The rand was also the best performer of the 16 most-
actively traded currencies monitored by Bloomberg this past week
on speculation India’s Bharti Airtel Ltd. may pay $4 billion for
a 49 percent stake in Johannesburg-based MTN Group Ltd., in a
cash and share-swap transaction. The deal would also require MTN and its shareholders to
purchase a 36 percent stake in Bharti in a merger that may form
a company stretching from the Cape of Good Hope to the Himalayas
with revenue of more than $20 billion and 200 million customers. “Rumors of potential foreign investment into South Africa
have probably fuelled speculation that the currency might rally
further,” said Timothy Ash, head of emerging-market economics
in London at Royal Bank of Scotland Group Plc. “That helps the
strengthening trend.”
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