Sunday, July 18, 2010

Will Bharti - MTN second time lucky to be?


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Bharti Airtel, India's largest private provider of integrated telecommunications, with over 100 million customers, has confirmed that talks with MTN Group, South African-based mobile operator with operations in 21 countries for the second time in a year for a possible merger. It is recalled that Bharti had entered talks to acquire MTN Group to be something more than a year ago. But contact with the global downturn in the foreground, has estimated the company come from their highsin 2007. In addition to these two companies have over 100 million subscribers, including sales and profits. It should be noted that the deal structure, this time to change

About Bharti: Telecom giant Bharti Airtel is the flagship company of Bharti Enterprises. The Bharti Group has a diversified portfolio of global brands and telecommunications. Bharti has recently forayed into retail business as Pvt Bharti Retail. Ltd., under an agreement with Wal-Mart forCash & Carry business. It has been successful in a company with international participation, with EL Rothschild Group to fresh agricultural products exclusively to markets in Europe, USA and the export has started and Bharti AXA Life Insurance Company Ltd under a joint venture with Axa has launched a worldwide leader in the financial protection and wealth management. Airtel Bharti Airtel Limited will come out, India's largest integrated and the first private telecom service providers with a presence in all 23 telecom circles. TheMobile business provides mobile and fixed wireless services using GSM technology in 23 telecom circles while the Airtel Telemedia offers business services and broadband telephony services in 95 cities and recently in India, Best Direct-to-Home ( DTH) service, Airtel digital TV.

About MTN: MTN Group, a company based in South Africa, multinational mobile telecommunications, which in many African and Middle Eastern. MTN is defined as "the market leader inTelecommunications in Africa and the Middle East "and the beginning of 2007 is active in 21 countries. (Since 2004, Africa was the fastest growing mobile market in the world.) Figures based group of customers to 103.2 million December 2008 MTN has a dominant market share, the highest in the world.

The deal: The hotel business is now different from last year, both the companies to keep all proportions other.Bharti has sweetened its offer to allow49% of MTN by increasing the cash part of its offer of 14 billion U.S. dollars, MTN may acquire minority groups opt to pay in cash. MTN and its shareholders are set to purchase 33% of Bharti for $ 10,000,000,000. Bharti as part of the transaction includes $ 4000000000 $ 10000000000 in shares and cash for MTN and stakeholders. Bharti is already in talks with eight banks, including Citigroup for between $ $ 4000000000 $ 3000000000 and 5000000000 to want it to be integrated as loans.

BizAddictVerdict: As with any major acquisition Bharti has to undergo some initial pain in the form of debt and equity for dilution prior to the realization of capital gains potential acquisitions. As with the price movements are expected until the fugitive is a done a lot, but Bharti and its investors to be patient and enjoy a long-term approach to the result of the acquisition. We recommend a buy this stock at current levels for long-term prospects. IfThe deal is through, Bharti not look back in years to come.

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