Cosatu has applied to the High Court in Pretoria to halt the deal between Telkom and Vodafone, so the Independent Communications Authority of SA's (Icasa) role in the transaction can be probed.

Congress of SA Trade Unions general secretary Zwelinzima Vavi said on Friday the federation had, on May 5, lodged an application against Icasa, Telkom SA, the minister of communications, Vodafone Plc, Vodafone Holdings SA, the Vodacom Group, and Vodacom.

The deal involves ending the joint shareholding in Vodacom by Telkom and UK-based telecommunications giant Vodafone.

The R22,5-billion transaction allows Vodafone to take an additional stake of 15 percent in Vodacom, with the remainder of the stake being unbundled.

Vodacom was expected to list on the JSE on May 4, but this was postponed due to a delay in obtaining all necessary regulatory approvals.

The listing was then set down for May 18.

"Cosatu is seeking an order reviewing and setting aside Icasa's decision of April 16, 2009 to the effect that its approval was not required in respect of the Telkom/Vodafone share transaction," Vavi said.

“Cosatu is also seeking orders declaring that Vodacom, the seventh respondent in the proceedings, is obliged in law to obtain the prior written approval of Icasa for the transfer of shares pursuant to the Telkom/Vodafone transaction and that without such approval the transaction is void and/or that Icasa is entitled to cancel Vodacom's licence," he added.

According to Cosatu, the respondents in the application were required to give notice within 15 days of their intention to oppose and thereafter to file their answering affidavits within 30 days of giving such notice.

Vavi said Cosatu had, together with its legal advisers, considered Icasa's view that the authority's approval was not required for the transaction, and dit not accept that such view was legally correct.

"In Cosatu's view, the sale by Telkom, would not only result in the sale of 15 percent of its shares to Vodafone Plc, but would also result in Telkom's remaining 35 percent also changing hands."

Vavi added that properly interpreted, there would be a change in Vodacom's voting power, which would enable a controlling shareholder to alter the company's board.

Cosatu also contended that under the regulations, Telkom's sale of its Vodacom shares to Vodafone Plc and the disposal of its remaining 35 percent would result in it ceasing to have any interest at all in Vodacom and would thus result in a transfer of a controlling interest.

Vodacom would then become a subsidiary of Vodafone Plc.

"There is public interest in the Vodafone/Telkom share transaction in that Telkom's 50 percent interest in Vodacom constitutes, in Cosatu's view, a public asset and that the SA government would no longer have an interest in SA's largest mobile operator."

Cosatu was also concerned the transaction would threaten the livelihood of Telkom's workers.

"Cosatu brings this application in its own interest, the interest of its members and in the public interest as contemplated in Section 38 of the Constitution," Vavi said.

Vodacom spokeswoman Dot Field said she was able to confirm that court papers had been served on Icasa and several others, including Vodacom as a respondent.

"The application is not a request for an interdict and has not been set down as a matter of urgency.

"Given that this matter will be the subject of court proceedings, Vodacom declines to make any further comment at this stage," she said.

Icasa also confirmed that it had been served with court papers.

"We have been served with those papers and we are studying their content.

"We cannot respond until we've put our minds to the content but we will respond accordingly," said Icasa spokesman Sekgoela Sekgoela.

Telkom could not comment immediately.

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