MTN said on Monday that it was in share price-sensitive talks with India's Bharti Airtel. <\/p>\n
The group did not give much away amid speculation that Bharti Airtel, India's biggest phone company, might launch a takeover offer for the local firm. <\/p>\n
"MTN is engaged in discussions with Bharti Airtel Limited which, if successfully concluded, may have a material effect on the price of the company's securities. The discussions are exploratory in nature and may or may not lead to any transaction," the company said in statement posted on the JSE's news service. <\/p>\n
London-based newspaper the Financial Times said in two articles, published last Tuesday and Saturday, that Bharti Airtel was mulling a takeover offer for the MTN. <\/p>\n
Earlier, MTN could not confirm or deny that the speculation, saying that it had not received "a specific proposal". <\/p>\n
People close to the situation said in one possible structure, Bharti would make a partial tender offer for a 51% stake in MTN. The South African group could then keep its listing on the JSE, the FT reported on Saturday. <\/p>\n
Shares in MTN have set new records on the speculation, closing up 3.81%, or R5.50, at new high of R150, valuing it at R279.8bn.<\/p>\n