As the self-imposed deadline for the Bharti-MTN deal was approaching, there was wide speculation that talks may be extended again. This was particularly so after Prime Minister Manmohan Singh and Finance Minister Pranab Mukherjee threw their weight behind the deal.
But it was only after a remark by Corporate Affairs Minister Salman Khurshid was it was amply clear that the deal was not going anywhere. He was clear that the two companies could not merge and still keep their identities apart, maintaining that the deal’s present format was unacceptable.
What actually made the Indian side stick to its stand was: If South Africa wanted MTN to retain its “national character”, why shouldn’t the same criterion apply to Bharti? Even the markets welcomed the stand as the Bharti shares soared after the deal fell through.
rounak