India's top mobile firm Bharti Airtel has extended merger talks with South AfricaÔÇÖs MTN until the end of September, it was announced today.
Bharti hopes to conclude a deal with MTN that would create a telecoms giant with more than 200 million subscribers, though it has said it has no plans to sweeten its bid.
 
If the two companies were to merge, the resulting firm would have revenues of over $20 billion and be IndiaÔÇÖs biggest cross-border transaction to date.
 
It would also become the worldÔÇÖs number three mobile operator by subscribers, behind China Mobile and Vodafone.
 
Under the proposed structure of the deal, Bharti would be the biggest stakeholder in the merged group, with a 49 per cent share in MTN. MTN shareholders would have an effective 36 per cent stake in Bharti.
 
The extension is the second since talks recommenced in late May, a year after they broke down following a dispute over control.
 
The cash-and-shares deal is said to be worth $23 billion. Some MTN shareholders, including South Africa's Public Investment Corp, which holds 20 per cent, have indicated that they expected a higher price from Bharti for effective control of MTN.
 
For the deal to be successfully concluded, it must be approved by at least 75 per cent of MTNÔÇÖs shareholders when it is put to vote.
 
 
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