Bharti, MTN likely to give update on talks on Monday-sources

NEW DELHI/JOHANNESBURG, July 31 (Reuters) - Bharti Airtel (BRTI.BO) and MTN Group (MTNJ.J) are likely to update the market on Monday on exclusive talks aimed at merging their operations, two sources with direct knowledge of the development said.

The exclusive talks over the deal, which would see each firm pay cash and stock for a stake in the other, were due to lapse on Friday. Last week, sources told Reuters the talks were likely to be extended by at least two to three weeks. [ID:nBOM371574]

MTN's second-largest investor also said earlier this week the South African firm was likely to reach an agreement with Bharti by the end of August. [ID:nLS596350].

"Probably it will be issued on Monday," said one source, of a possible company statement.

"You won't probably get anything until Monday," said the other source.

Both the sources declined to be named due to the sensitivity of the matter.

A spokeswoman for MTN declined to comment.

A spokeswoman for Bharti Airtel, when asked when the company would give an update on its talks with MTN, said, "when I can say some something to you, I will issue a statement." (Reporting by Devidutta Tripathy and Rebecca Harrison; Editing by Tony Munroe, Himani Sarkar)