MTN said in a cautionary announcement, which it is obliged to issue under JSE stock exchange rules, that talks were still in progress.

MTN, Africa's biggest cell phone operator by subscribers, and Bharti, India's leading cellular firm, have revived talks aimed at creating the world's No. 3 wireless group with more than 200 million subscribers and combined revenue of $20 billion.

The chief executive of MTN's biggest shareholder, state pension fund Public Investment Corporation (PIC), told Reuters in June the fund supported the talks but said there was "room for improvement" on the price.

Bharti Airtel's chairman said last week the group was not working on sweetening the deal, but did not rule it out.