India’s top mobile firm Bharti Airtel has offered a range of new  concessions to SA’s MTN in order to seal a tie-up, a  report said on Tuesday.

“Bharti Airtel is making a slew of last-minute concessions to  sew up a deal with MTN as it awaits a political push to take the  planned tie-up past the hurdle of national pride in SA,”  the Economic Times newspaper said.

Bharti has also offered MTN minority shareholders US$13bn in cash, rather than a combination of cash and shares, to  acquire their 36% stake in the SA firm, the paper  said, quoting a source close the deal.

A merger between the two would create the world’s third-largest  mobile phone operator by subscribers, which would straddle Africa,  Asia and the Middle East.

According to the report, Bharti is also proposing that MTN’s top  management retain their positions for the next three years and that  it would cap its stake in MTN at 49% for at least five  years.

The latest deal would increase the MTN stake in the merged entity to 27% instead of the 25% offered in May.

A final agreement could be blocked by the issue of whether India  would allow the merged company to be listed on both the Indian and  SA stock exchanges.

The SA government is concerned about a large national  company being taken over by a foreign competitor and reports have  said it wants the merged company to be listed in Johannesburg as  well as Mumbai.

A dual-listed company involves two listed firms that have  different sets of shareholders but share ownership of a single  business operation. SA allows dual listing, while India  does not.

Allowing dual-listed companies in India would involve substantial changes in  foreign exchange and stock market laws and would require full  cabinet approval.

Bharti Airtel and MTN are in exclusive talks on a merger that  will end on September 30 unless extended. — Sapa-AFP