Bharti scrip sinks over 3%

MUMBAI: Telecom operator Bharti Airtel's scrip fell 3.19 percent during afternoon trade on Tuesday, after plummeting over 9 percent the previous day as investors continued to speculate on the burden a $10.7 billion acquisition it has planned.

At the Bombay Stock Exchange, the Bharti scrip was trading at Rs 276.30, a fall of 3.19 percent from its previous close.

The Sunil Mittal-controlled Bharti Airtel had said Monday it was in exclusive talks to acquire Kuwait telecom company Zain's assets in Africa for $10.7 billion.

Traders had thereafter dumped Bharti stock, which ended Monday over 9 percent lower at Rs.285.40, on fears that the proposed acquisition could strain the company's finances.

The proposed takeover will not include Zain's assets in Morocco and Sudan, the company said about the bid -- its third attempt to enter the African market after twice failing to enter into a merger pact with South Africa's MTN.



Following yesterday's steep fall, the market valuation of Bharti Airtel came down by about Rs 11,000 crore to Rs 1.08 lakh crore.

Analysts, however, are optimistic that if Zain starts performing, the deal could reap returns to Bharti in the long term.

Last year, shares of Bharti was pummelled after its $23 billion merger bid for the South African MTN on concerns of increase in debt burden.