MTN takes a dive
MTN’s share price took a tumble yesterday, its fastest dip in four years, with its takeover on hold
The stock fell 7,6% from Friday’s closing price of R157 to an intra day R145,11 low after Indian suitor Bharti Airtel walked away rather than lift its R165 per share bid.
Now MTN has declared a lock down period of 45 days to hold exclusive talks with Bharti rival Reliance Communications. Reliance proposes “a potential business combination” although MTN stresses there is no certainty the talks will lead to anything.
The tie-up with Bharti imploded as the operators failed to agree on a suitable structure for merging operations. Bharti said structures had been evaluated before terms were drawn up. Then MTN presented a completely reworked structure, proposing that Bharti Airtel became a subsidiary.
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