07-07-2008
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Join Date: Feb 2007 Location: Cochin
Posts: 167
Rep Power: 2  |  MTN-R-Comm exclusivity ends: Road ahead for the deal
MTN-R-Comm exclusivity ends: Road ahead for the deal Quote: Reliance Communications, or R-Comm, has offered to meet Reliance Industries in the week starting July 14 to clarify any doubts. It clarified that the meet is not part of any conciliation or dispute resolution process. "Neither is there any dispute nor is there an occasion for conciliation process as RIL's claim is legally and factually untenable and misconceived."
The 45-day exclusivity period gets over on July 8. It had been reported that Reliance Communications may get 20% fresh issue in MTN and the move will skirt public offer. On May 26, Reliance Communications and MTN got into a phase of exclusive talks. The 45-days exclusivity period gets over on July 8.
Sources in ADAG said this exclusivity period could be extended by at least another 2-3 weeks. There is no word from MTN yet. Sources from MTN said they will update their shareholders and make an announcement tomorrow, when the Johannesburg Stock Exchange opens.
There are different possibilities doing the rounds. In the past few days, there has been an intervention from the Mukesh Ambani Group, where they claimed the refusal on the sale of Reliance Communications. There is a possibility that the deal structure could be changed to avert any legal challenge that could come in from RIL.
MTN is wary of a potential legal challenge, which is why they could be looking at other structures, which could involve Reliance communications picking up a stake directly, even if it is a smaller stake of about 25% or 30%. So, in that way, there would be some synergy between the two companies. However, there is no conformation from both sides yet for this possibility.
Financial Times had reported that MTN could even quit Reliance stocks because of the potential legal challenge that has come in from Mukesh Ambani. There is no word in from both the companies. This report has not been confirmed yet. So, the most likely possibility is an extension of the period of exclusivity talks by 2-3 weeks. | Moneycontrol India :: News :: MTN-R-Comm exclusivity ends: Road ahead for the deal :: Reliance Communications :: Business :: Sandeep Gurumurthi,Reliance Communications,MTN |
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