Bharti’s Talks to Merger with MTN Could Not Materialize
After almost a month of negotiations, Bharti could not take the merger talks further with South African company MTN due to disagreement over the holding structure. Bharti said the structure proposed by MTN would not capture the synergies of the two companies and was a convoluted way of getting an indirect control of the combined entity, compromising the interest of the minority shareholders of Airtel.
Bharti’s vision of transforming itself from a home-grown Indian company to a true Indian multinational telecom giant, symbolizing the pride of India, would have been severely compromised and this was completely unacceptable to Bharti.
Bharti has decided to disengage from the ongoing talks and has conveyed the same to MTN,” said a Bharti spokesperson. The company said it had got funding of over $60 billion from various global banks for the proposed merger.
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