The two groups are discussing options under which Bharti will acquire 49-percent stake in MTN and the South African company, along with its shareholders, will buy 36-percent equity in the Indian company.

The potential transaction is proposed to create a leading telecom service provider group, aligning Bharti's market-leading Indian business with MTN's growing African and Middle Eastern operations.

Both Bharti and MTN have over 100 million subscribers and the deal will make the combined entity among the top five telecom service companies in the world, with annual revenues of $20 billion.