Mumbai: Shares of Sunil Mittal-promoted Bharti Airtel on Tuesday dropped over five per cent after the telecom major said it has entered into an exploratory discussion with South Africa's MTN Group for the latter's acquisition.

The scrip settled at Rs 846.60, down 5.29 per cent on the Bombay Stock Exchange, against the previous day's close of Rs 893.85. It had touched intra-day low of Rs 840.35.

"Current discussions are still at an early stage, are exploratory in nature and may or may not lead to any transaction," Bharti Airtel said.

Meanwhile, MTN had also informed the Johannesburg Stock Exchange that it was engaged in talks with Bharti Airtel.

"Further to the statement released by the company on Friday, April 25,2008, shareholders are advised that MTN is engaged in discussions with Bharti Airtel, which if successfully concluded, may have a material effect on the price of the company's securities," MTN's statement to the bourse had said on Monday.

Shares of MTN were trading over 5 per cent higher at 158 rand on the Johannesburg Stock Exchange, while the company has a market capitalisation of 279 billion dollars.

MTN is a provider of communication services, offering cellular network access and business solutions and operates in 21 countries in Africa and the Middle East.

Last week, there were also speculations that Anil Dhirubhai Ambani Group firm Reliance Communications might also be looking to bid for MTN. RCom scrip settled 1.98 per cent down at Rs 543.30 on the BSE, after touching intra-day low of Rs 540.

Source : PTI