UPDATE 1-India's Bharti, MTN talks to close this weekend-paper

(adds quotes from MTN CEO in German magaine)

MUMBAI, May 17 (Reuters) - India's Bharti Airtel Ltd (BRTI.BO: Quote, Profile, Research, Stock Buzz) and South African telecoms operator MTN Group (MTNJ.J: Quote, Profile, Research, Stock Buzz) may complete their merger talks this weekend, India's Mint newspaper reported on Saturday, citing financial industry sources.

Bharti is the leading mobile phone operator in India, the second-biggest wireless market after China. Bharti has said talks with MTN are preliminary and no bid has been made.

Media and analysts estimate Bharti may value MTN as high as $50 billion. Merging the two firms would create the world's sixth-largest mobile operator, with more than 130 million subscribers in nearly two dozen countries. For more on Bharti, double click on [ID:nBOM48622]

"What I hear from the bankers involved with this transaction is that Bharti should be giving details of its bid and explain how the entire transaction would be funded over the weekend," the Mint newspaper said, citing a financial analyst who spoke to the people involved in the discussions.

A second source who spoke to the paper confirmed the timing of the closure of the deal but declined to provide details.

A spokesman from Bharti declined comment.

The Financial Times said last week that Bharti had made an indicative bid of 165 rand per share for 51 percent of MTN, valuing it at about $37 billion, making it India's biggest overseas acquisition.

While MTN is being advised by Merrill Lynch (MER.N: Quote, Profile, Research, Stock Buzz) and Deutsche Bank (DBKGn.DE: Quote, Profile, Research, Stock Buzz), the FT said Standard Chartered (STAN.L: Quote, Profile, Research, Stock Buzz) was advising Bharti.