Bharti Infratel shares slip over 6% as deadline for deal with Indus Towers extended again

The share price of Bharti Infratel slipped over 6 percent after the deadline for the company's merger with Indus Towers was extended again, to August 31. This is the seventh time that the deadline has been extended to close the deal.

The stock fell as much as 6.43 percent to Rs 218 apiece on the NSE, however, it pared some losses to trade 4 percent lower at Rs 223.70, at 11:15 am.

"Since the conditions precedent to be fulfilled for the scheme to become effective cannot be completed by the extended Long Stop Date that is June 24, 2020, the board of directors has further extended the Long Stop Date till August 31, 2020, subject to agreement on closing adjustments and other conditions precedent for closing, with each party retaining the right to terminate and withdraw the scheme," the company said in an exchange filing.

The final decision to implement the scheme will be taken by the board keeping in mind the best interest of the company and its stakeholders, added Bharti Infratel.

Global brokerage firm Morgan Stanley maintained an 'underweight' stance on Bharti Infratel with the target price set at Rs 175. The brokerage noted in its report that the extension of long-stop date for Indus Towers merger is not a surprise adding that it is quite evident that the company would like to have a clear view on AGR.