Thursday, July 9, 2009

Regulator Says MTN Does Not Have to Make Open Offer for Airtel

Bharti Airtel can now divest its 36% stake in South Africa`s MTN Group (and its shareholders) via global depository receipts (GDRs) without MTN issuing a mandatory open offer.

Market regulator, the Securities and Exchange Board of India (SEBI) has approved the said move.

Both the companies are in exclusive discussions over a complex deal that could lead to a full merger, creating the world`s No. 3 wireless group with at least 200 million subscribers and combined revenue of USD 20 billion (Rs 970 billion).

Shares of the company gained Rs 27.3, or 3.48%, to settle at Rs 810.90. The total volume of shares traded was 343,808 at the BSE (Tuesday).

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