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| Bharti-MTN phone deal talks start | Bharti-MTN phone deal talks start |
| (28 minutes later) | |
| South African and Indian officials are holding talks in Mumbai to discuss the planned merger between mobile phone firms MTN and India's Bharti Airtel. | South African and Indian officials are holding talks in Mumbai to discuss the planned merger between mobile phone firms MTN and India's Bharti Airtel. |
| A merger would create the world's third-largest mobile phone group. | A merger would create the world's third-largest mobile phone group. |
| Under the proposal MTN would take a 36% stake in Bharti, while Barti would get a 49% stake in the South African firm. | Under the proposal MTN would take a 36% stake in Bharti, while Barti would get a 49% stake in the South African firm. |
| The two sides will discuss regulatory matters regarding the deal. The South African Treasury says a tie-up offers "excellent possibilities for synergy". | The two sides will discuss regulatory matters regarding the deal. The South African Treasury says a tie-up offers "excellent possibilities for synergy". |
| The two companies had been in merger talks last year, but these broke down when they failed to agree on who would lead the merged group. | The two companies had been in merger talks last year, but these broke down when they failed to agree on who would lead the merged group. |
| Dual listing? | |
| There have been questions about whether the merged company would be listed on both the South African and Indian stock exchanges. The South African government is keen for this to be the case, according to reports. | There have been questions about whether the merged company would be listed on both the South African and Indian stock exchanges. The South African government is keen for this to be the case, according to reports. |
| South Africa allows dual listing, while India does not. | South Africa allows dual listing, while India does not. |
| India's capital markets regulator, the Securities and Exchange Board of India (SEBI), says it has not received an application for dual listing. | |
| SEBI chairman CB Bhave told reporters it was "too premature" to comment on the issue of dual listings. | |
| A spokesperson for Bharti said: "We can confirm that the structure, under discussion with MTN, will be fully compliant with the laws in both countries. | A spokesperson for Bharti said: "We can confirm that the structure, under discussion with MTN, will be fully compliant with the laws in both countries. |
| "All relevant approvals... would be sought at the appropriate time." | |
| Knowledge sharing | |
| The South African Treasury said it was working closely with the Indian government to ensure that any merger benefits not only the two companies, but both countries as well. | |
| "We have received an application from MTN for an exemption on a range of exchange controls regulations, and due process is being followed," the Treasury said in a statement. | |
| "There are excellent possibilities for synergy between an Indian company and a South African company, which also offers knowledge sharing, new technological capacity and leveraging, which will enable both countries to benefit." | "There are excellent possibilities for synergy between an Indian company and a South African company, which also offers knowledge sharing, new technological capacity and leveraging, which will enable both countries to benefit." |