Claiming that merger discussions with South African firm MTN are progressing 'satisfactorily', Bharti Airtel said on Thursday that the period for exclusive talks has been extended by yet another month till September 30.
This is the second time this month that the period for exclusive talks has been extended.
"Discussions between the parties regarding the potential transaction continue to progress satisfactorily and the parties have accordingly agreed to extend the exclusive period until September 30, 2009," Bharti Airtel said.
"No decisions or agreement to acquire any shares or implement the transaction has yet been made by the boards of either Bharti or MTN and the discussions may or may not lead to any transaction," Sunil Mittal-run Bharti Airtel said.
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.
At the time of the first extension earlier this month, the company had said: "The structure and terms of the potential transaction may be adjusted to reflect further discussion between the parties."
As per the proposal, Bharti would acquire 49 per cent 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 will create a leading telecom service provider with a combined revenue of over $20 billion and a customer base of over 20 million.
