Bharti ups the MTN offer as deal deadline looms

This deal is making news from the day they said they will be acquiring MTN for a $7.6 billion deal, but then many months have been passed with nothing happening, but as the deadline was coming near the Indian mobile operator Bharti Airtel's move to sweeten a $24 billion deal with South Africa's MTN is a key step in reaching an agreement as a deadline nears,

Bharti has increased the cash component of its offer for a 49 percent stake in MTN to $10 billion from a proposed $7.6 billion. Apart from that Bharti would pay $4 billion in stock for a total package of $14 billion, 7 percent more than the earlier $13 billion proposed deal.  The deal is subject to an end-September deadline. The firms have extended talks twice.

Management of both companies are working hard and are optimistic that they'll get an agreed offer to put to shareholders before the end of the month.  Reuters reported last month that Bharti might sweeten its offer for the MTN stake by 5-10 percent. And then the regulatory issues were the last hurdle to be crossed ahead of an announcement, one of the sources said, adding he did not see any major obstacles.

Analysts all over are saying that the key component in the success of the deal would be the response of MTN shareholders. HSBC said both companies management are working hard to sort out regulatory issues before approaching MTN shareholders of which 75 percent of whom have to approve the deal.

The note said the approval, in principle, from South Africa's Department of Communications and labor unions over the last month support its argument that the deal could go through. Given this, we believe there is a fair chance of Bharti and MTN reaching an agreement, but approval of 75 percent of MTN shareholders will be key.

So People what are your views, will this help Bharti Airtel to clinch the deal which is taking a very long time to happen?