Claws are out as Santie packs up

10 October 2010 - 02:00 By Marcia Klein
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Marcia Klein: There is something afoot at MTN ahead of the departure of CEO Phuthuma Nhleko in March - Grapevine is getting a distinct feeling of some blood on the floor of the cellphone company's executive suite.

Following the surprise announcement last year that financial director Rob Nisbet had resigned, we have seen the departure of executive Tim Lowry, and now this week the announcement of the imminent departure of another executive, Santie Botha - well-known for turning Absa red and MTN "yello".

On the face of it, this doesn't look good.

It is rumoured that Botha is joining her ex-colleague Nisbet, who is apparently involved in a company looking at Wimax and broadband technologies. It is understood there is no love lost between Botha and Sifiso Dabengwa, the current chief operating officer and one of the frontrunners to take over from Nhleko.

The executive departures could have big implications for MTN. It is about to face an ambitious attempt by Telkom to enter the mobile market. MTN needs to show investors it has a long-term strategy following a number of unsuccessful attempts to conclude an international deal. It is also has to show that it is business as usual despite the imminent departure of Nhleko, who has ensured that MTN keeps growing and keeps its shareholders happy.

That is easier said than done when some of its top execs are abandoning ship. Grapevine is not sure if the board has Dabengwa or someone else in mind to succeed Nhleko, but if its plans are known in the executive suite, it appears that the choice, whatever it is, is not popular.

Irritating advertising tactic

Telkom launches its new mobile strategy this week. It's going to be a case of a market-share war between Heita, Ayoba (MTN) and Yebo (Vodacom) by all accounts, with Telkom coming into the fight pretty late; in fact, a bit too late.

Telkom, as most of us now know even though it is supposedly a secret, has used the irritating tactic of making us guess what all this Heita is about until it finally reveals that it's the new buzzword of its advertising campaign to launch its new mobile network.

Wagging the dog

When multinational companies come to SA, journalists are often left rather frustrated at how they micro-manage their relationship with the press. Any queries are escalated upwards to a massive global PR operation, and generally, by the time answers have been rubber-stamped by various departments and toned down, the answer comes back as little more than a "no comment".

Just ask anyone trying to deal with companies like Apple.

Walmart is no exception. Its deal with Massmart is by no means tied up but it has already sent a corporate communications team on its first foray to check out the local state of play.

The team was in the country this week having off-the-record private meetings with the press. We are used to doing the interviewing, but it was, by all accounts, unclear who was interviewing who. As a colleague pointed out: "If you ask me, their hush-hush meetings with the media were more like auditions to find out who is suitable to meet with the big boss next week" rather than meetings to impart useful information on the company.

A show of strength - at last

Dealmaking has become a little tricky of late as a number of deals face some rather staunch opposition. ArcelorMittal faces huge challenges in its controversial and, in Grapevine's opinion, morally questionable, deal with various well-connected individuals, and the PIC has added its powerful voice of opposition.

Avusa, which owns this newspaper, faces a make-or-break meeting this week in its proposed acquisition of Universal Print Group and Hirt & Carter. It's good to see investors raising their voices, for a change.

  • kleinm@sundaytimes.co.za
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