Mobile services giant MTN was firmer at the opening bell on Thursday, adding 2.35 rand, or 1.92 percent, to R124.50 after it advised on Wednesday that it had not been able to conclude a proposed merger deal with India's Bharti Airtel.

The JSE said late on Wednesday afternoon it had been requested by MTN to suspend trading in its securities until the commencement of business on October 1.

At its last trade yesterday, MTN had given up R1.15, or 0.93 percent, to R122.15 on the JSE.

A local trader said: "I think we will see a rush this morning to get MTN's shares at their current price. Most traders are of the view that its shares are good value at the current price.

"I expect shares in the firm will slide during the course of the day to below 120 rand."

Another trader said: "Traders will be looking at MTN today on a purely face value basis now that this show with Bharti is over."

Bharti Airtel shares on the Bombay Stock Exchange had risen more than 5 percent at 09:10.

MTN advised on Wednesday that it had not been able to conclude a proposed merger with India's Bharti Airtel "within the economic, legal and regulatory framework within which both companies operate".

"Accordingly, MTN and Bharti have mutually decided to terminate further discussions regarding the potential transaction," it said in a brief statement.

Bharti said in a statement late on Wednesday afternoon that the parties had decided to "disengage from their discussions when the exclusivity period ends on September 30, 2009".

"This structure needed an approval from the government of South Africa, which has expressed its inability to accept it in the current form. In view of this, both companies have taken the decision to disengage from discussion," Bharti said.

In a statement, the National Treasury said that the Minister of Finance, Pravin Gordhan, had held discussions with MTN Chairman Cyril Ramaphosa and CEO Phuthuma Nhleko, regarding the proposed merger between MTN and Bharti Airtel.

"MTN advised the Minister that the two companies have mutually decided to terminate further discussions on the proposed merger, as they were not been able to conclude all outstanding matters to enable the transaction to proceed," the Treasury said.

"In principle, the South African government is supportive of local companies that want to grow and diversify offshore from a domestic base. We particularly welcome such diversification to emerging and developing countries, as South Africa is committed to deeper South-South relationships.

"The South African government believes that the structuring of such partnerships is best left to the companies themselves, who must make their decisions on commercial grounds.

"However, when companies structure their relationships outside the current exchange control regulatory framework for such transactions, they require the approval of the Minister of Finance. This was the case with the proposed MTN-Bharti merger, which required certain exchange control and other approvals," the Treasury stated.

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