MTN seeks $1 billion more for merger with Bharti: report
14 Aug 2009
South Africa's MTN Group Ltd wants Bharti Airtel to raise its merger offer by more than $1 billion in order to successfully conclude the deal, reports said.
The $1 billion that MTN is seeking now, primarily in cash, would be an additional 9 per cent over the original offer made by Bharti, according to media reports.
The two companies had extended their 31 July deadline by a month to 31 August, in order to conclude their exclusive merger talks. (See: Suspense continues: Bharti, MTN extend talks till 31 August)
Meanwhile, minister of state for finance Namo Narain Meena had, last week, appraised Parliament of a $ 2 billion loan that Bharti had sought from the Sate Bank of India (SBI).
"Bharti Airtel has approached SBI for loans of $1 billion and Rs5, 000 crore," the minister had stated in his written reply.
However, he added that SBI had not finalised the loan, although the bank is not required to seek approval from market regulator Securities and Exchange Board of India. It is the borrower's responsibility to obtain the necessary permission, he said.
