Bharti and MTN are understood to be close to agreeing an exclusivity deal over their merger talks but are still negotiating financial terms, according to press speculation. Reports suggest that the deal may now be made in two parts in a 50:50 cash/shares agreement, creating a fully-merged company. According to Dow Jones, quoting sources close to the situation, Bharti has set a maximum transaction value of US$45 billion, while MTN is said to want US$50 billion. Both valuations represent a significant premium on MTN’s current market capitalisation of around US$38 billion. Bharti was believed to have originally proposed a partial takeover, offering a reported US$19 billion for a 51 percent controlling stake in the South African-based operator.

The two operators are also reportedly in discussions regarding the make-up of the merged entity’s board of directors. India’s Business Standard reports that Bharti’s Sunil Mittal could be made deputy chairman and CEO of the new company, while MTN chairman MC Ramaphosa could become new group chairman. The report also notes a number of other hurdles that the companies must overcome to make a deal, including the Indian government’s 74 percent cap on foreign ownership and the sanctions in some countries where MTN operates (such as Iran, Liberia and Syria), which could make it difficult for US-based investment banks to fund the deal.