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Bharti offers post of chairman to Ramaphosa in joint entity

Bharti offers post of chairman to Ramaphosa in joint entity
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First Published: Thu, May 15 2008. 05 50 PM IST
Updated: Thu, May 15 2008. 05 50 PM IST
PTI
New Delhi : In a bid to swing the deal for acquiring South African telecom giant MTN, Bharti is believed to have proposed the chairmanship of new entity to Matamela Cyril Ramaphosa, the non-executive chairman of MTN group.
According to industry sources, the management structure has been chalked out by Bharti, as per which Sunil Mittal, the chairman of Bharti Group, is likely to be made MTN Group CEO and deputy chairman of the entity.
MTN CEO Phuthuma Nhleko is likely to be made the group deputy CEO. This is understood to have been the management structure agreed upon by both the companies.
Bharti spokesperson said “we have already issued a statement. We have nothing further to add to our last statement”.
Sunil Mittal yesterday held talks with MTN’s top management in London to workout a broad scheme of arrangements for a possible merger between the two companies.
According to sources, while Mittal wants ‘exclusivity agreement´ with MTN to be signed this week, MTN management is believed to have disagreed with him, saying it would be ‘anti- shareholder´.
An exclusivity agreement would bar MTN from sharing any information or arrangements for a merger with any other firm. The Bharti management is believed to have offered 168 rands a share to MTN shareholders, while the South African company wants a higher price.
According to sources MTN is asking for $50 billion while Bharti is willing to offer up to $45 billion.
It is also learnt that Bharti wants to offer 70% stock and 30% cash for a possible merger to the MTN shareholders, whereas the South African telco has asked for a 50% stock and 50% cash deal.
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First Published: Thu, May 15 2008. 05 50 PM IST