India Inc feels let down by Bharti-MTN deal failure

Ankur Garg (Company Secretary and Compliance Officer)   (114773 Points)

01 October 2009  

Thursday 01 October, 2009.


India Inc feels let down by Bharti-MTN deal failure

Corporate India on Wednesday felt let down by the failure of the USD 23-billion proposed merger deal between telecom giants Bharti Airtel and South Africa's MTN but said the south-south co-operation was still alive.

 

"In this particular proposed deal they (South African government) could have said they will make an exception in their law in terms of dual listing norms," Ficci Secretary General Amit Mitra said.

He, however, said there was still scope in South Africa where Indian companies are preferred by "black administration" which today controls the country.

Assocham President Sajjan Jindal described the development as "the most unfortunate".

He said the merger between Bharti and MTN would have provided a "golden opportunity" for India Inc to spread its wings in the global business space.

"It is most unfortunate. The MTN deal has been called off despite full support from the Indian government. It was a golden opportunity for India to globalise its wings," he said.

In a consolatory tone, CII Director General Chandrajit Banerjee said the MTN deal not going through should not be seen as a dampener.

"India Inc has had many success in the past and in future too we can hope to see some large merger and acquisitions by Indian companies, including the likes of Bharti," he added.

PHDCCI President Satish Bagrodia, however, said, "Indian industry is quite disappointed with the proposed deal being called off. In future Indian companies will be over cautious."