PDA

View Full Version : [July,9] Reliance, MTN Extend Merger Talks



Aurion
09.07.08, 18:33
Reliance Communications of India and MTN of South Africa have extended their period of exclusive negotiations to July 21 in their bid to merge the two telecommunications companies.

Reliance Communications announced May 26 that it had entered into exclusive negotiations with MTN for a period of 45 days for a potential combination of their businesses. The exclusivity of the negotiations meant that MTN would not negotiate a merger with any other company during this period.

The merger talks came under fire from Reliance Industries, a rival company, which said that it had the right of first refusal to the disposal of the controlling stake held in Reliance Communications.

Backed by the Ambani family, Reliance Communications and some other related companies came under Anil Ambani, after he and his brother Mukesh Ambani divided the business empire built by their father. Mukesh Ambani is the chairman and managing director of Reliance Industries.

The dispute over the proposed merger with MTN came to a head Monday, with Reliance Industries threatening legal action.

Source :

PC World - Reliance, MTN Extend Merger Talks (http://www.pcworld.com/article/148104/reliance_mtn_extend_merger_talks.html)