Bharti, MTN extend merger talks by a month

Bharti, MTN extend merger talks by a monthNew Delhi  - Indian telecommunication major Bharti Airtel Ltd and South Africa's MTN Monday extended to August 31 their talks for merging operations that would create the world's third-largest mobile phone operator, news reports said.

Bharti and MTN on May 25 announced resumption of the talks that collapsed last year. The negotiations for the deal estimated to be worth 23 billion dollars were to be finalized by July 31.

"No decisions or agreement to acquire any shares or implement the potential transaction outlined above has yet been made by the boards of either MTN or Bharti," Bharti said in a statement released to the Bombay Stock Exchange.

"Shareholders are advised that the discussions between the parties regarding a potential transaction are continuing and both parties have agreed to extend the exclusivity period until up to 31 August 2009," the statement said.

"The discussions may or may not lead to any transaction and the structure and terms of the potential transaction may be adjusted to reflect further discussions between the parties," it added.

The two firms are discussing options under which Bharti, India's largest mobile phone operator would acquire a 49-per-cent stake in MTN and the South African company would buy 36-per-cent equity in Bharti.

The potential transaction would create a leading telecom service-provider group, aligning Bharti's market-leading Indian business with MTN's growing African and Middle Eastern operations, the Economic Times daily said in its report.

The successful completion of the deal would create the world's third-largest telecom company with more than 200 million customers, over 20 billion dollars in revenues and a footprint in Africa, Asia and the Indian subcontinent. (dpa)