What happened with the MTN deal?

We decided to start the negotiations after MTN invited us three to four times to talk to them. Their offers continued to change. Initially they asked whether we would like to acquire the company, but then that got into issues with the regulations of the South African government.

Then we talked about a merger and signed a term sheet, under which MTN would merge with Bharti Airtel [Get Quote]. That offer was put to the board of MTN. Subsequently, the MTN board came out with a new convoluted offer that we should merge with MTN and after that we would have a majority control in MTN.

This was not acceptable to us. Our interest is not about our own shareholding, but our aim of making Bharti Airtel a global multinational. MTN has had talks even earlier with 5-6 players and they have been looking for a partner.

Was FDI an issue? Was your plan to merge MTN with Bharti against the 74 per cent foreign direct investment limit?

This was not an issue as we had enough leeway to give MTN shareholders equity in Bharti within the 74 per cent FDI limit. That was never a problem.

Now that this deal is off, what is your plan to become a global player?

We will continue to look for opportunities around the globe. We are clear that we will not acquire a company until we are invited.

After Bharti, RCom in talks with MTN