MTN board approves talks with only Indian suitor, Bharti’s chances improve

MTN board approves talks with only Indian suitor, Bharti’s chances improve
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First Published: Fri, May 16 2008. 12 46 PM IST

Updated: Fri, May 16 2008. 12 46 PM IST
Despite news coming in that an exclusivity clause has been rejected by the board of MTN Group Ltd in its merger talks with Bharti Airtel Ltd, the deal looks on track because as of now the target’s board has authorised the MTN management to talk only with the Indian suitor. Sure, the possibility that an unsolicited or hostile bid could be made by someone such as Emirates Telelcommunications Corp. (Etisalat) but such approaches will face two hurdles: one, the offer will have to be substantially more than what Bharti Airtel values MTN at for the target’s board to feel compelled to consider such on on bid. And, two, stock market regulations in South Africa are tight and complex and not conducive to hostile bids.
So, Bharti Airtel edges forward on the deal and reflects better chances (65:35) to close the transaction successfully
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First Published: Fri, May 16 2008. 12 46 PM IST