Indian mobile operator Bharti Airtel's move to sweeten a $24 billion deal with South Africa's MTN is a key step in reaching an agreement as a deadline nears, analysts and sources said on Friday. Bharti has increased the cash component of its offer for a 49 percent stake in MTN to $10 billion from a proposed $7.6 billion, two people familiar with the matter said.
On top of that, Bharti would pay $4 billion in stock for a total package of $14 billion, 7 percent more than the earlier $13 billion proposed deal. "We believe a deal under the aforementioned terms would be positive for Bharti given only a marginal increase in overall payout," RBS analysts wrote in a research note.
The deal is subject to an end-September deadline. The firms have extended talks twice. "Management of both companies has been working hard and I'm optimistic we'll get an agreed offer to put to shareholders before the end of the month," according to one source, who could not be named as he was not authorised to speak publicly about the negotiations.