Johannesburg: After nearly two weeks of speculation and denials, the South African mobile network company MTN has said it is in "exploratory" discussions with the New Delhi-based Bharti group for a possible takeover or a strategic alliance.

Market analysts here said MTN was forced to make a statement after international media speculation about the potential deal.

MTN released a statement after markets closed Monday evening. This followed a day of intense interest in MTN, with shares in the company closing nearly four percent higher than at the start of the day.

The statement said MTN was engaged in discussions with Bharti Airtel which may have a material effect on the price of the company's securities if successfully concluded.

"The discussions are exploratory in nature and may or may not lead to any transaction. Accordingly, shareholders are advised to exercise caution when dealing in the company's securities until a further announcement is made."

Earlier, the company said it had noticed some speculation in the media regarding a potential offer. "MTN receives tentative approaches from time to time, which are always evaluated by the company. The board of MTN has not received any specific proposal and if and when there is anything specific to report, the market will be notified."