The Telegraph
18 May 2008
New Delhi, May 17: Bharti Airtel’s plan to merge with South African telecom major MTN is possible only if it forms a consortium with SingTel as the deal is both costly and complex, feel analysts.
The Singapore-based telecom firm, which holds around 30.5 per cent in Bharti Airtel, is keen to expand and has spent $13 billion in recent years to acquire stakes in mobile operators in Asian countries and Australia.
According to market analysis, for a 100 per cent buyout of MTN, Bharti will need to pay around $50 billion or $25 a share, including debt, which is about 25 per cent more than its current value on the stock exchange.
Moreover, since MTN is not convinced with the “exclusivity deal” with Bharti, higher bids by rival telecom firms such as UAE-based Etisalat could raise the cost further.
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