MTN no to exclusivity pact a setback to Bharti

MTN no to exclusivity pact a setback to Bharti
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First Published: Thu, May 15 2008. 11 57 PM IST
Updated: Thu, May 15 2008. 11 57 PM IST
Mumbai: The first serious difference in merger talks between Bharti Airtel Ltd and MTN Group Ltd, Africa’s biggest phone firm, has emerged with the target’s board refusing to sign an exclusivity agreement with the Indian company on the negotiations.
MTN has baulked at what is called a ‘break-up fee’, typically running into millions of dollars and an integral part of such pacts, a person with knowledge of the talks said. MTN’s decision does not indicate the deal with Bharti Airtel has soured but leaves the door open for other suitors such as Emirates Telecommunications Corp. to enter the fray.
A Bharti Airtel spokesman declined fresh comment on Thursday.
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First Published: Thu, May 15 2008. 11 57 PM IST