Telecom giant Bharti Airtel and South Africa's MTN today said that no decision has been taken by their respective boards to acquire shares or implement the proposed merger between them as the period for exclusive talks has been extended till August 31.
"As discussions between the parties regarding the potential transaction are continuing, both parties have agreed to extend the exclusivity period up to August 31, 2009," Bharti said in a statement.
"No decisions or agreement to acquire any shares or implement the transaction has been made by the boards of either Bharti or MTN and the discussion may or may not lead to any transaction," Bharti and MTN said in separate statements.
This is the second time in a little over a year that Bharti has entered into negotiations with the South African telecom firm for a proposed share-swap and cash deal to merge the two companies to create a $23-billion entity.
Asked about the reasons for extending talks, a Bharti spokesperson declined to comment.
The Bharti's statement, however, said, "The structure and terms of the potential transaction may be adjusted to reflect further discussion between the parties."
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Bharti had announced on May 25 that it has entered into exclusive talks with MTN for exploring a potential transaction and the two parties would be talking exclusively till July 31.
As per the proposal, Bharti would acquire 49 per cent shareholding in MTN and in turn MTN and its shareholders would acquire about 36 per cent economic interest in the Indian firm.
Bharti and MTN had agreed to discuss the potential transaction with one another until July 31, 2009. The potential transaction would create a leading telecom service provider with a combined revenue of over 20 billion dollar and combined customer base of over 20 million.