Barti Airtel leapfrogs Etisalat in battle for MTN

In addition, Barti which is already in exploratory talks with MTN, may press for an exclusivity agreement with the South African company before entering into the next round of negotiations with it.

Industry sources said Barti, currently the sole company to have started discussions with MTN for a possible takeover or majority stake, was first looking at the exclusivity agreement that would bind MTN not to disclose the terms of arrangement to any other party.

Although a Barti spokesperson declined to comment, sources said Barti was keen to see the transaction process going fast.

Recently, UAE’s incumbent operator Etisalat expressed interest to look at MTN to evaluate it for possible expansion in the African market. Once an exclusive agreement is signed between Barti Airtel and MTN, Etisalat may find it difficult to enter the negotiations.

A combination of Bharti and Airtel would create the world’s sixth biggest mobile firm with around 130 million subscribers.

Industry sources added the deal would be a negotiated one in the absence of any other player and would need due diligence from both sides for making Barti formally offer a price tag on complete buy-out or the majority stake.

Barti, which is believed to be talking to wealth funds in the Middle East to tie up funds for the deal, is also learnt to have approached its 30 percent partner Singtel for financial assistance.

A SingTel spokesperson dec;lined to comment.

Analysts said the Sunmil Mittal Company should be willing to offer more than 200 rands a share in case more players were in the picture.

Earlier, Orascom, China Mobile and Vodafone had stated that they would not bid for MTN although "they are interested in the African market."