Control of WBS

ADSL South Africa (Broadband South Africa), 27 March 2007

Alan Knott-Craig, Chief Executive Officer (CEO) of Vodacom, recently made his intentions to eventually obtain ‘management control of WBS’ clear. Will he succeed?
 
He ‘…was quoted in the Financial Mail as saying that ‘he eventually wants management control of WBS’ (iBurst shrugs off potential controlling Vodacom stake, MyADSL, 26 March 2007).
 
In other words, he wants a controlling stake (51%+) in Wireless Business Solutions (WBS).
 
Why would Alan Knott-Craig want a controlling stake in WBS?
 
It makes business sense.
 
Reasons:

• iBurst holding company – Wireless Business Solutions (WBS) is iBurst’s holding company and Vodacom already has a 10% stake in WBS.

• WiMax spectrum – It’s no secret that Vodacom is after iBurst’s WiMax spectrum.

• Growing customer base – iBurst’s customer base is growing at the speed of light.

• Expanding network – iBurst’s network is expanding fast as iBurst aggressively continues to rollout its network countrywide.

Will he succeed?
 
He might succeed if his son changes his mind and if the price is right.
 
‘Knott-Craig Jnr was adamant that Vodacom would not gain management control of iBurst, but added that their recent partnership has helped the smaller wireless provider as they can now retail iBurst products in Vodacom shops’ (iBurst shrugs off potential controlling Vodacom stake, MyADSL, 26 March 2007.
 
In other words, while it’s clear that Knott-Craig Jnr will stand in the way of his dad’s ambition of gaining management control of iBurst, he also acknowledged the benefits iBurst already enjoys because of a recent partnership with Vodacom.
 
iBurst’s CEO, Thami Mtshali, clearly don’t share Knott-Craig Jnr’s take on things because according to him “everything is for sale at the right price” (iBurst shrugs off potential controlling Vodacom stake, MyADSL, 26 March 2007).
 
In other words, Knott-Craig Senior might succeed if the price Vodacom offers is high enough to met Mtshali’s expectations.
 
What are the chances that Knott-Craig Jnr will come around?
 
Chances are good.
 
We think he might give his old man a chance depending on how far his dad is willing to go with this. Although his dad will fight an uphill battle if his son reads this.
 
One can’t help to find the whole situation interesting to say the least… because after all the relationship between a father and his son might call the shots on the end of the day!
 
ADSL South Africa (Broadband South Africa) hopes Knott-Craig Jnr will stand his ground like a true warrior. Don’t make it easy for them.