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Indian Telecoms Firm Bharti Airtel May Buy MTN

28th April '08

MTN Group Ltd., Africa's largest mobile-phone company, climbed to a record in Johannesburg trading after the Financial Times reported that Indian firm Bharti Airtel Ltd. may bid for the company. Bharti, India's largest mobile-phone operator, is considering a bid for the company, the newspaper said yesterday, citing unidentified people familiar with the matter.

"Speculation is unwarranted'' on the issue, Indian billionaire Sunil Mittal, who controls Bharti, told reporters in New Delhi today, adding Bharti is always looking at acquisitions. MTN hasn't received "any specific proposal,'' the Johannesburg-based company said in a statement to the city's stock exchange. "MTN receives tentative approaches from time to time, which are always evaluated,'' it added. "It will have to be a juicy offer,'' Bruce Main, a fund manager at Ivy Asset Management said by telephone from Johannesburg today.

"MTN's got huge potential in Nigeria and Iran is starting to look like it's going to be a big success too.'' Main manages MTN shares worth about 100 million rand ($13.1 million). MTN rose 7.53 rand, or 5.7 percent, to a record close of 140.53 rand in Johannesburg, the biggest gain since April 1. The closing price values the company, which gained 38 percent in the past year, at 262.1 billion rand.

The company had 68.2 million subscribers at the end of March, up from 14.3 million three years ago as MTN ventured beyond its maturing home market in South Africa and into countries including Iran, Nigeria, Uganda and Ghana. It operates in 21 countries. ``We like emerging markets,'' Mittal said in an April 4 interview. ``We're happy to look at any opportunities around the globe, both organic and existing operators.''

MTN is a takeover target for an overseas operator because of its emerging-market assets, Richard Ferguson at Nomura Securities Co. said March 25. Millicom International Cellular SA and Orascom Telecom Holding SAE are the only other mobile companies that also have extensive operations across Africa and the Middle East, he said. Bharti surged as much as 97 rupees, or 11.5 percent, to 940 rupees on the Bombay Stock Exchange after saying fourth-quarter profit rose 37 percent to 18.5 billion rupees ($460 million).

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