Mittal to resume talks with MTN

Bharti Group chief Sunil Mittal is likely to resume talks with MTN's top management in Johannesburg to carry forward negotiations left inconclusive in London for a possible merger of the two entities.

Mittal is expected in the South African capital shortly to hold parleys, industry sources said.

Meanwhile, Telecom Watchdog, an NGO, cautioned the MTN Chairman that a merger of the two companies would not be in compliance with regulations in India.

Telecom Watchdog Secretary Anil Kumar told PTI: "I have written a letter to MTN chairman Cyril Ramaphosa to take note of the fact that a 51 per cent acquisition by Bharti is okay but a full scale merger through share-swap will surely breach the FDI guidelines in India which is sure to be challenged legally.

"I have told him not to take any dubious route for merging with Bharti and circumvent the laws. It is okay if it is a 51 per cent acquisition."

Foreign Direct Investment in Bharti already touches 65 per cent and it can absorb a further nine per cent.

"In case of a merger we have apprehensions of a possible breach of Indian regulatory norms related to foreign investment... In case of any regulatory breach, we will not hesitate in going to the Indian courts for a legal recourse to stop any illegalities," Kumar said in his letter.

Russian operator Altimo's arm Vimpelcom and Deutsche Telekom are also believed to have expressed interest in MTN, a leading telecom player in Africa. When contacted, Deutsche Telekom said it does not comment on rumours and speculations, while queries to Altimo officials remained unanswered.

Earlier, UAE's incumbent operator Etisalat had also said it was examining the possibilities of joining the fray for MTN.