Reuters first with MTN shareholder reaction to Bharti deal

MTN shares extended losses to over 4 percent on May 27 after Reuters broke news that big shareholders in the South African telecoms firm would reject a tie-up with India’s Bharti Airtel based on terms unveiled earlier in the week. Reuters’ reporters got hold of shareholders who said Bharti would have to increase its offer in the deal to create the world’s third biggest wireless group. Bharti shares were up 3 percent the following day after falling 10 percent over the previous three sessions. The Reuters story on the deal, which is also being closely followed by currency markets, was cited by other news services including Bloomberg. Reuters also secured exclusive comment from the Mikati family, MTN`s No. 2 shareholder, saying it would back a tie-up with Bharti. The first major MTN shareholder to support the deal, the Mikati family also said it would remain a long-term MTN shareholder. The Reuters snaps were used verbatim on Indian TV and prompted a flurry of calls from Indian media. Bharti requested a copy of the story after receiving media calls.