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MTN shares plunge nearly 4 per cent

The telecom major's scrips fell to 125.56 rands per share in the morning trade even as it announced its withdrawal from the agreement.

business Updated: Jul 21, 2008 16:02 IST

Shares of South African telecom major MTN plunged nearly 4 per cent on Monday after the firm's talks with Indian billionaire Anil Ambani-led Reliance Communication for a possible merger were called off.

The scrip fell as much as 3.64 per cent to 125.56 rands per share in the morning trade on the Johannesburg Stock Exchange.

Shares of the company saw high fluctuations touching an intra-day high of 128.75 rands and an intra-day low of 120.50 rands.

On Friday, both MTN and RCOM called off their exclusivity talks for a possible merger citing "certain regulatory issues."

Both sides said they have mutually agreed for lapse of the 45-day exclusivity agreement that was extended on July 8 for a further two weeks to July 21.

MTN announced withdrawal of the agreement "owing to certain legal and regulatory issues," and said the parties were unable to conclude a transaction.

"Accordingly it has been mutually decided to allow the exclusivity agreement to lapse and caution is no longer required to be exercised by shareholders when dealing in MTN securities," the South African firm had said.