It happened last time and the story seems to be repeating the same way this time around as well. The emergence of merger talks between Bharti and MTN Group of South Africa has lead to a fall in share price of Bharti.

While the media is obsessed with projecting the deal as one of its kind and sort of creating a new high for Indian Inc as well as Sunil Mittal’s vision of creating a global brand, the concerns of shareholders appear to be missed out in the bargain.

The reflection of shareholders apprehensions can be very well judged from the market reactions to the deal, with Bharti Airtel’s script witnessing decline for two consecutive days. The share prices of the company went down by 6% on first day and almost by 5% yesterday.

The developments compelled Bharti to state that the funds needed for the deal would not be enormous and can be arranged with easily.

Shareholders on their part have valid reasons to be concerned about the deal.

Firstly it well known that MTN is facing some margin pressures on the financial front. And even Bharti has acknowledged that it will have to incur a hit initially due to this margin pressure.

Secondly the shareholders may be apprehending a possible fall-out of talks similar to last year though the possibility of that happening this time looks remote.

Additionally it is still not clear what the organizational set-up will be post merger of the two firms.  

Bharti is gaining attraction and interest not only in India but across the globe for the bold move taken to merge with MTN. But it has to take every one along in achieving its goal and shareholders certainly form one of the most important stakeholders. Bharti should address the concerns of the shareholders in the same way in which it addressed the concerns of the promoters during the deal last time.