Bharti Airtel falls on concerns of possible bidding war for MTNMeanwhile, the BSE Sensex was up 148.13 points, or 0.83%, to 17,004.67, as a retreat in oil prices eased worries about inflation and after news of a takeover deal in the technology sector helped drive Wall Street higher on Monday, 12 May 2008.
On BSE, 79,554 shares were traded in the counter. The scrip had an average daily volume of 5.19 lakh shares in the past one quarter.
The stock hit a high of Rs 846 and a low of Rs 826 so far during the day. The stock had a 52-week high of Rs 1,149 on 10 October 2007 and the stock hit a 52-week low of Rs 700 on 22 January 2008.
India’s largest telecom services provider by sales had underperformed the market over the past one month till 12 May 2008, gaining 4.23% compared to the Sensex’s return of 6.66%. It had also underperformed the market in the past one quarter, declining 2.05% compared to Sensex’s return of 1.52%.
The company’s current equity is Rs 1,897.92 crore. Face value per share is Rs 10.
The current price of Rs 830.50 discounts its Q4 March 2008 annualised EPS of Rs 37.77, by a PE multiple of 21.98.
Bharti had recently said it was in exploratory talks for a stake in MTN. Media reports suggest Bharti may bid for a controlling 51% stake in MTN
Other potential contenders such as China Mobile, Orascom and Vodafone have all said they are interested in the African market, but are not bidding for MTN.
While Bharti’s offer for MTN is said to be around rand 165 per share, international media said the company would raise this to around rand 175 per share. Reports added that Indian telco is prepared to offer up to rand 200 per share. This values MTN at around $45-$50 billion. The proposal envisages acquisition of 51% in MTN by Bharti Airtel.
Meanwhile, Bharti said Monday, 12 May 2008, it has signed a deal with Apple to bring the iPhone to India, later this year.
Bharti Airtel reported 39.30% rise in net profit to Rs 1792.30 crore on 42.1% increase in sales to Rs 7,413.73 crore in Q4 March 2008 over Q4 March 2007.
The company provides mobile telecommunication services in India. It also provides fixed-line, VSAT, Internet and broadband services.
Wireless Mobile Telecom Wireless News
