Shares in MTN, a leading mobile phone operator in emerging markets, hit fresh highs Tuesday after India’s Bharti Airtel confirmed it was in talks which could lead to it buying a controlling stake in the Johannesburg-listed company. MTN’s shares closed up almost 7% after Bharti’s confirmation, although Bharti’s shares fell more than 5% as investors signalled concern about a possible deal. The FT reported Tuesday that Bharti had made an informal offer for 51% of MTN’s equity at R160 a share, valuing MTN’s entire equity at $37bn. Lex says that in light of MTN’s earlier ambitions and bright prospects, it “may look perverse to cede control to a company of similar size”.

This entry was posted by Gwen Robinson on Wednesday, May 7th, 2008 at 5:33 and is filed under Capital markets, M&A. Tagged with bharti airtel, MTN. Edit this entry.