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New Delhi, Sept. 10: Sunil Mittal-promoted Bharti Airtel, which is negotiating a $23 billion alliance with South Africa’s MTN, may have to shell out more in cash to clinch the deal.

MTN shareholders now want around $10 billion in cash by reducing the GDR component, sources said.

“MTN shareholders now want more in cash and also want a higher price,” said sources familiar with the deal.

Bharti had initially offered MTN shareholders $13.1 billion — around $7.4 billion in cash and $5.7 billion in global depositary receipts (GDRs). The two firms are in exclusive talks till the end of September.

Banking sources said Bharti had approached foreign lenders to increase its loan component. Bharti is in talks with eight banks, including Barclays and Citigroup, for $3-4 billion five-year dollar loans.

Earlier, there were reports that Bharti and MTN had reached a preliminary agreement on their planned strategic alliance and that Bharti had sweetened its bid to buy 49 per cent of MTN by increasing the cash portion of its offer.

Denying such reports, Bharti said its talks on a proposed deal with MTN were progressing but they were yet to reach an agreement.

The world’s biggest cross-border deal this year would pave the way for the creation of a mobile phone carrier with annual sales of $20 billion and 200 million wireless subscribers from Johannesburg to Mumbai.

The accord would need the approval of 75 per cent of MTN’s shareholders, some of whom have said Bharti should raise its offer from a bid disclosed in May.

The complex transaction proposes that Bharti will acquire a 49 per shareholding in MTN. In turn, the South African firm will acquire a 25 per cent stake in Bharti while its key shareholders will pick up another 11 per cent.

Analysts are optimistic about the deal getting a seal of approval before the exclusivity period expires this month.

“It is clear both for MTN and Bharti where their next markets are. Both Africa and India hold 33 per cent of the world's population and both these markets have around 40 per cent penetration allowing for a lot of opportunity,” said Romal Shetty, telecom analyst at consultancy firm KPMG.