UK-based mobile phone giant Vodafone Group Plc has entered exclusive talks to raise its stake in South African mobile phone operator Vodacom by paying up to 16 billion rand ($2.4 billion) for an additional 15 percent interest.

Vodafone said on November 03 that the talks are being held with the Rembrandt Trust, which controls the unlisted 'B' ordinary shares in VenFin, an investment holding company listed on the Johannesburg stock market.

Vodafone said it intends to acquire the VenFin shares in the market on November 03, at up to 47.25 rand per share. The move would increase Vodafone's effective shareholding in Vodacom, which is 50 percent owned by Telcom, from 35 percent to 50 percent.

Vodafone said the increased stake would give it more exposure to the growing South African market.

Copyright Reuters, 2005