South Africa considers Telkom stake sale to fund SAA bailout- Treasury

South Africa is considering selling its stake in landline provider Telkom to fund a 10b rand ($757m) bailout of South African Airways (SAA), a Treasury spokesman said Wednesday. The airline runs one of Africa's biggest fleets but is loss-making. It received state funds in July to help to repay debts and also depends on government debt guarantees of about 20b rand. "It's an option among others we are looking into, and nothing has been finalised," Treasury spokesman Mayihlome Tshwete said. Mayihlome was responding to comments by opposition Democratic Alliance party lawmaker Alf Lees, who told parliament Treasury was looking to sell its stake in Telkom to fund SAA. Minister of Finance Malusi Gigaba told parliament on Aug. 4 the state would not privatise SAA or sell its stake in Telkom to fund bailouts of struggling state firms. The government holds a stake of about 39% in Telkom, while government pension fund the Public Investment Corporation holds another 11.4%. Gigaba has said he would disclose a preferable financing option for SAA at the medium-term budget statement in October.<br/>