Bharti-MTN again extend merger talks to 30 September
20 Aug 2009
Bharti, India's largest mobile company by subscribers as well as revenue, today said that its exclusive merger talks with South Africa's MTN is being extended by another month to 30 September 2009.
In a press release, Bharti said, ''Discussions between the parties regarding the potential transaction continue to progress satisfactorily and the parties have accordingly agreed to extend the exclusivity period until September 30, 2009.''
This is the second time in a month that Bharti and MTN have extended their exclusive merger talks, giving rise to specualtion the proposed merger was being fine-tuned.
On 3 August, both companies had extended their 31 July deadline to 30 August since discussions between them regarding the potential transaction were continuing. (See: Suspense continues: Bharti, MTN extend talks till 31 August)
According to CNBC-TV18, citing a source said, although the deal was on track and the companies were hopeful of appropriate closure, the SAT case is one reason for the Bharti-MTN talk's extension.
Deepak Mehra, a shareholder of Bharti Airtel, has made Bharti and MTN party in a case filed by him with the Securities Appellate Tribunal (SAT), challenging a 22 June SEBI order that exempts MTN from making an open offer to Bharti Airtel shareholders.
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