Bharti seeks Middle East funds for MTN bid - WSJ
SINGAPORE, May 13 (Reuters) - India's leading mobile operator Bharti Airtel Ltd (BRTI.BO) has contacted Middle Eastern sovereign wealth funds in a search for additional cash to back a bid for a majority stake in South Africa's MTN Group Ltd (MTNJ.J), the Wall Street Journal reported on Tuesday, citing people familiar with the situation.
However, there is no agreement yet, the paper reported.
Bharti, which has said it is in talks with MTN but has not yet made any bid, is reported to be considering offering 160-165 rand a share for a 51 percent stake in MTN that would cost $19 billion. A person familiar with the talks told the Journal late last week that Bharti may raise that to 175 rand per share.
The sources have told the newspaper that Bharti has already negotiated about $12 billion in financing from a group of banks that includes Standard Chartered PLC (STAN.L).
A combination of Bharti and Airtel would create the world's sixth-biggest mobile firm with around 130 million subscribers.
Singapore Telecommunications Ltd (STEL.SI), Bharti's largest shareholder with more than a 30 percent stake, is actively involved in the talks between Bharti and MTN, a source familiar with the situation told Reuters on Monday. [ID:nSIN215968]
The source said it was premature to speculate if SingTel would help fund any Bharti bid.
Emirates Telecommunications Corp (ETEL.AD) (Etisalat) said on Monday it was looking at MTN as a possible acquisition target as part of a drive to expand in Africa. [ID:nL12636852]
(For more on Bharti/MTN, click [ID:nBOM48622])
