(Adds MTN comment, fund manager quotes)
By Devidutta Tripathy and Marius Bosch
NEW DELHI/JOHANNESBURG, May 13 (Reuters) - Bharti Airtel Ltd's <BRTI.BO> talks with South African mobile operator MTN <MTNJ.J> were still "exploratory" and there was no requirement to make a bid, the Indian group said on Tuesday.
Bharti, valued at about $37 billion, is the leading mobile phone operator in India, the second-largest market for wireless services in the world after China. A deal with MTN would produce the world's sixth-largest wireless firm, with over 130 million subscribers in more than 20 countries.
"The discussions being held are aimed at combining the strengths of the two leading 'emerging markets' players and accordingly veering towards possible structures to achieve this objective," the company said in a statement.
MTN declined to comment, saying it stood by a statement issued on May 5 when it first said it was in talks with the Indian group.
"At this stage MTN is not commenting further... Should this position change, MTN will communicate accordingly," MTN said in an e-mailed statement.
Harit Shah, telecoms analyst at Mumbai-based Angel Broking, said he did not see the two firms discussing a merger.
"I am not sensing a merger. If Mittal has to take control, he has to bid and come out with an open offer as per South African rules," he said, referring to Bharti Chairman Sunil Mittal.
JOINT VENTURE
Jan Meintjes, a fund manager who helps manage 2.3 billion rand ($301.2 million) in assets at South Africa's Gryphon Asset Management said the groups may be discussing a joint venture or a number of other cooperation agreements.
"It can be joint venture or it can be one of a number of other structures ... Both sides will want something that will bring the best value to shareholders," Meintjes said.
The Asian Wall Street Journal, quoting an unidentified source, said on Monday that Bharti was considering raising its offer to around 175 South African rand ($22.84) a share for control of MTN. It said an official bid could come this week.
Bharti, in which Singapore Telecommunications Ltd <STEL.SI> owns 30.5 percent, said it had not made any bid and the reports were "incorrectly speculated".
The UAE's Emirates Telecommunications Corp <ETEL.AD> (Etisalat) said on Monday it was also evaluating a possible bid for MTN.
But Meintjes said buying any stake in MTN would come at a price.
"They will have to compensate shareholders for 10 years of growth, and there are shareholders who will hold out for a premium," he said.
China Mobile Ltd <0941.HK> <CHL.N>, the world's biggest mobile carrier, has said it is interested in the South African market, but has not bid for MTN.
Britain's Vodafone Group <VOD.L> said on Sunday it has no intention of pursuing a bid for MTN, responding to media reports that it was considering buying all or part of MTN.
Ahead of the statement, shares in Bharti closed 2 percent lower at 821.25 rupees, while MTN stock closed 0.63 percent lower at 159 rand.
Bharti's shares have fallen 8.1 percent since the MTN talks were announced last week, and together with a slide in the rupee against the dollar, has sliced about $3.3 billion off the firm's market value.
MTN's market value has risen to $38.8 billion, after an 8.8 percent increase in its share prices since May 2, the trading day before the company said it was in talks with Bharti. (Additional reporting by Serena Chaudhry in Johannesburg, editing by Will Waterman)
