The South African government has denied local press reports about it planning to nationalise the fixed line operator Telkom.

It was reported this week that the ANC-controlled government was planning to take over the company, following cabinet’s recent rejection of Korean group KT Corp’s bid to buy a 20% stake in Telkom.

But Siyabulela Qoza, the spokesman for South Africa’s communications minister Dina Pule, told online business publication MoneyWeb: “There has not even been a discussion or talks inside the department about any proposal for Telkom.”

South Africa’s government owns almost 40% of Telkom, making it the company’s largest stakeholder. Furthermore, the Government Employees Pension Fund holds a further 10.89% stake.