UPDATE 2-India's Bharti talks with MTN still exploratory

(Adds MTN comment, fund manager quotes)

By Devidutta Tripathy and Marius Bosch

NEW DELHI/JOHANNESBURG, May 13 (Reuters) - Bharti Airtel Ltd's (BRTI.BO: Quote, Profile, Research, Stock Buzz) talks with South African mobile operator MTN (MTNJ.J: Quote, Profile, Research, Stock Buzz) were still "exploratory" and there was no requirement to make a bid, the Indian group said on Tuesday.

Bharti, valued at about $37 billion, is the leading mobile phone operator in India, the second-largest market for wireless services in the world after China. A deal with MTN would produce the world's sixth-largest wireless firm, with over 130 million subscribers in more than 20 countries.

"The discussions being held are aimed at combining the strengths of the two leading 'emerging markets' players and accordingly veering towards possible structures to achieve this objective," the company said in a statement.

MTN declined to comment, saying it stood by a statement issued on May 5 when it first said it was in talks with the Indian group.

"At this stage MTN is not commenting further... Should this position change, MTN will communicate accordingly," MTN said in an e-mailed statement.

Harit Shah, telecoms analyst at Mumbai-based Angel Broking, said he did not see the two firms discussing a merger.

"I am not sensing a merger. If Mittal has to take control, he has to bid and come out with an open offer as per South African rules," he said, referring to Bharti Chairman Sunil Mittal.