Why bharti mtn deal failed

According to rating agency CRISIL's principal economist, 'proper risk management needs to be in place for full capital account convertibility Sign in Create a Rediffmail account. Last updated on: October 01, IST. Get Rediff News in your Inbox: email. All rights reserved. It was perhaps all this that led India to conclude that it would not be possible to carve out a special dispensation only for a dual listing without major change, a fact echoed by communications minister A.

Raja in comments to reporters on Thursday. Never miss a story! Stay connected and informed with Mint. Download our App Now!! It'll just take a moment. Looks like you have exceeded the limit to bookmark the image. Remove some to bookmark this image. You are now subscribed to our newsletters. Seven of the 15 countries reported losses.

Zain has 42 million subscribers in Africa September while Bharti has These numbers can be used to paint an optimistic picture or a pessimistic one. For instance, low penetration rates could mean either a huge upside opportunity or lack of demand needing many years of expensive market development. Low ARPUs could imply poor revenue streams or future growth potential. Besides, some operations are showing losses because of mismanagement.

Bharti might argue it would change all that. Raman, practice head of infocomm, media and education at the Tata Strategic Management Group, an independent management consulting firm. But Zain is in a different league. The balance sheet position appears comfortable for funding the deal. Business daily The Economic Times looks at the acquisition along another dimension.

Over time, high minutes of traffic can be generated with lower dilution in ARPU. In India, the numbers range from to depending on the operator. Other issues, too, could impact valuations. There is an ownership issue with the Zain Nigerian unit. MTN is a major competitor in most of the markets.