Bharti Airtel and MTN started their talks in February about mergers and acquisition. Prices were decided and discussed in March and finally a term sheet was signed. But on this Thursday there was one more proposal sent by MTN which was not accepted by Bharti ( source moneycontrol.com ). In the proposal it was stated that Bharti will become a subsidiary of MTN and Bharti should exchange majority of shares of Bharti Airtel with MTN. It was also told that Bharti should also exchange Singtel for controlling stake of MTN.

As this proposal was not all accepted by Bharti they decided to stop the ongoing talks with MTN. There were talks going on with VimpelCom and MTN which was stopped last month.Three months ago MTN also had talk with Etisalat. In last year it had talks with China Mobile.But it seems MTN do not want to transfer its control in foreign hands.

In between Bharti had got dozen of International bankers from US and Europe who has sent letters stating that they are ready for funding. In all funding was over USD 60 billion.Earlier when there was news that Bharti is interested in MTN there was fear that company may go for any equity dilution or leveraging their balance sheet.There were also fears that from where money will be raised or company will go for debt raising and so this fears led to share correction.

Bharti has stopped its further discussions with MTN and it do not want get involved in any kind of bidding war. Now what happens to Bharti. It started going up last Friday only and now it looks as one of the best stock to be in.