RCOM-MTN Mutually Agree To Call Off Talks
By VCCircle - Fri 18 Jul 2008 09:30 AM PST
India’s second largest telecom company, Reliance Communications, has decided to call off the merger talks with South Africa’s MTN. The decision to call off talks is a mutual decision. RCOM and MTN started a 45-day exclusive negotiations on May 26 which was extended till July 21. Reliance Communications has said that deal was inconclusive due to legal and regulatory issues. Mukesh Ambani-led Reliance Industries had claimed the right to first refusal in case Reliance Communications shares are sold off to an external investor, which had cast a dark cloud over the talks between the telecom majors. The decision to call off talks comes a day after RIL had nominated an arbitrator to resolve the dispute with RCOM.
Reliance Communications was also arranging private equity and debt funds to sponsor the deal. Bharti Airtel was also in talks with MTN before, which was called off as the two companies could not reach an understanding on the structure and control issues.
This story was provided by our content partner VCCircle
Posted in: Mergers & Acquisitions, Operators, MTNL
