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| SAT dismisses plea against Bharti Airtel |
| Rajesh S Kurup / Mumbai Aug 28, 2009, 16:33 IST |
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Paving way for the companies to pursue their merger, the Securities Appellate Tribunal (SAT) has dismissed a petition filed by a Bharti Airtel shareholder in Mumbai, who had opposed to a Sebi order exempting South African telecom major MTN Group from making an open offer.
On May 25, Bharti Airtel and MTN Group had announced that the companied were in exclusive talks for a merger. The proposed $23 billion merger would also result in creating on the largest telecom companies in the world by way of revenues and subscriber base.
According to sources close to the development, SAT has dismissed the petition, as the quasi-judicial body found no merit in the case.
When contacted a Bharti Airtel spokesperson confirmed the development and said: “We learn that the appeal has been dismissed. We are awaiting the contents of the full order".
However, the shareholder - Deepak Mehra – could not be immediately contacted.
Mehra, who holds around 200 shares, has challenged a June 22 Sebi order that exempts MTN from making an open offer to Bharti Airtel shareholders.
In its order, Sebi stated that MTN would be required to make an open offer only if it converts global depository receipts (GDR) from Bharti Airtel into equity shares with voting rights.
On August 11, a two-member SAT bench observed that both Bharti Airtel and MTN could be made parties in the petition, which was primarily against the market regulator.
MTN and Bharti Airtel were in talks for a proposed $25-billion merger to create one of the largest telecom firms in the world.
According to sources, Bharti Airtel and MTN say that the appeal has been filed to “create an impediment to the transaction.”
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