Indian telecom giant Bharti Airtel and South Africa's largest telecom operators MTN have decided to extend the deadline of their executive talks, for a possible merger, up to August 31, according to a joint statement issued by both companies.

The joint statement went thus: "As discussions between the parties regarding the potential transaction are continuing, both parties have agreed to extend the exclusivity period up to August 31, 2009."

Bharti Airtel and MTN are said to be working out the details of final agreement worth $23 billion. However, Bharti Airtel, in a statement, said that merger talks would not necessarily yield any transaction.

MTN and its shareholders, as per agreement, would buy 36 per cent stakes in Bharti Airtel as global depository receipts (GDRs), and it will be listed with the Johannesburg stock exchange.

The final deal will materialize after clearing various regulatory hurdles, besides getting the requisite nod from the shareholders of the respective companies. Bharti group, however, will easily get MTN shareholders approval, as the deal is supported by the Mikati family of Lebanon and NewShelf, having 10.18 per cent and 14.87 per cent stakes in MTN respectively.

In addition to its talks with Bharti, MTN had also been involved in merger talks with the Anil Ambani-controlled Reliance Communications since last year, but the deal failed to materialize over some issues of management control and objections from the Mukesh Ambani-led RIL.