Bharti Airtel and South Africa’s MTN have extended their exclusive merger talks until August 31, 2009, citing issues including the price and the structure of the proposed alliance.

Bharti Airtel and South Africa’s MTN have extended their exclusive merger talks until August 31, 2009, citing issues including the price and the structure of the proposed alliance. MTN’s minority shareholders have reportedly asked Airtel to hike the offer price by around 10 per cent, increase the cash component of the deal by reducing the share of global depository receipts and bear the foreign exchange risk until the deal is complete. Market analysts believe that even a 5 per cent increase in cash value could result in an additional outgo of around $400 million for Airtel.