Deadline looms for Bharti-MTN deal
The fate of a major tie-up between India's top mobile firm Bharti Airtel and South Africa's flagship cellular group MTN hung in the balance on Wednesday with the deadline for talks due to expire.
Shares of Bharti Airtel rose nearly one percent or 3.65 rupees to hit 422.5 rupees in morning trade with time running out on the exclusive talks.
A spokesman for Bharti said it was not known when an announcement might be made. The deadline for the conclusion of discussions, which began in May, has already been extended twice.
"The two parties are in exclusive talks until the end of September," a spokesman said.
The estimated 24-billion-dollar alliance could prove the world's biggest cross-border deal this year.
The talks between MTN, Africa's largest cellular group, and Bharti, are aimed at forging a giant with annual revenues of over 20 billion dollars and 200 million customers.
India's Financial Chronicle, quoting an unnamed finance ministry official, reported Wednesday that Bharti had asked MTN for two more weeks of exclusive discussions. There was no comment from Bharti.
"We'll most likely see another extension," investment analyst Rajay Ambekar of Prudential South Africa told AFP by telephone.
Comments