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Bharti Shares drops on deal concern

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Shares in Bharti Airtel fell more than 3 percent on Tuesday after the mobile operator and South Africa’s MTN group extended talks (to August 31) aimed at creating the world’s No 3 operator, beating China Mobile and Vodafone.

Bharti Airtel closed at 400.55 rupees and was among the top 20 traded stocks on the BSE, with volumes up to 835.10 million rupees.

The deal is valued at around $23 billion with a complex structure involving share swap and cash. MTN and its shareholders would take 36 percent economic interest in Bharti and the Indian firm would end up with 49 percent of MTN.

In the present structure, according to sources, Bharti will pay about $4-5 billion, which would probably be funded via debt and the rest through issue of new shares.  MTN-BHARTI/FUNDING

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