Bharti Airtel Ltd.

Just two months after the collapse of the $24 billion merger talks with South Africa's MTN group, Bharti Airtel is once again on the deal path. It wants to pick up 70% in Warid Telecom of Bangladesh and the two companies are in discussion for a proposed transaction. The news has originated from the Bangladesh Telecom Regulatory Commission, but Bharti has denied comment on it.

Bangladesh-based Daily Star newspaper reported that Bharti would pay around $900 million for a 70% stake in Warid Telecom. The paper said that UAE's Dhabi Group, which controls Warid Telecom, had already sought approval from the Bangladesh Telecommunications Regulatory Commission for the transaction. Commission chairman Zia Ahmed has confirmed the development, as per the news report. Bharti would invest $300 million initially, it is believed.

An industry source observed that national security concerns could have an adverse impact on the negotiation, as Warid has a strong presence in Pakistan as well. Recently, the ministry of home affairs sought a review of the FIPB (Foreign Investment Promotion Board) clearance granted to US-based Telecordia because Pakistan is among the countries where the company had implemented mobile number portability.

Warid Telecom is a joint venture between Abu Dhabi Group and SingTel, which is a foreign partner of Bharti Airtel also. Warid Telecom is currently operational in Bangladesh and Pakistan, while it is also setting pace to initiate its operation in Uganda and Congo. Bharti Airtel has over 110 million subscribers in India. Warid had 2.79 million subscribers in Bangladesh as of end of October.