Tags:MTN | China Mobile

Bharti Airtel, India''s top mobile phone firm, has bid for 51 percent of South African telecommunications group MTN, valuing the firm at $37 billion, the Financial Times reported on Tuesday. The newspaper quoted unnamed "insiders" as saying that Bharti had tabled a bid for MTN at 165 rand per share and had secured $12 billion from banks to finance the deal, which would make Bharti a top player in emerging markets telecoms.

MTN said in a statement issued on Monday that it was in talks with Bharti. It described the talks as "exploratory in nature" and advised shareholders "to exercise caution".

The FT said Goldman Sachs and Standard Chartered had each pledged to underwrite $6 billion of the amount Bharti needed to purchase the controlling stake, citing people close to the situation. Bharti would fund the balance by issuing equity.

Sunil Bharti Mittal, Bharti''s founder and chairman, told the Financial Times: "We''re delighted that they''ve chosen to talk to us. It confirms Airtel''s standing in global telecoms, but whether it will lead to anything, I don''t know."

"I have been overwhelmed by the kind of response we have had from the banks," the paper quoted Mittal as saying. He denied Bharti would have difficulty raising the funds needed for the bid in the present difficult capital markets.

Singapore Telecommunications, which owns over 30 percent of Bharti, confirmed in a statement on Tuesday morning that Bharti was in talks with the South African firm.

Echoing MTN''s comment, it said: "Current discussions are still at an early stage, are exploratory in nature and may or may not lead to any transaction."

The FT cited unnamed sources as saying MTN''s board had yet to grant Bharti exclusive access to its books and was holding out for an offer nearer 180 rand per share.

Other companies likely to be interested in MTN include Reliance Communications, Vodafone and China Mobile, the FT said.

The FT also quoted insiders as saying that MTN''s board may not want to be seen selling 100 percent of one of South Africa''s flagship firms to foreign bidders.



Source:Reuters