'Reliance Comm, MTN seek to extend exclusive talks'

Anil-led Reliance Communications and South Africa's MTN are believed to be discussing an extension of exclusivity agreement between them by a few weeks.

Hit by uncertainties caused due to the feud between two Ambani siblings, Anil-led Reliance Communications and South Africa's MTN are believed to be discussing an extension of exclusivity agreement between them by a few weeks.

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Investors in both the companies looked concerned about the legal issues raised by Mukesh Ambani-led Reliance Industries and the same is being reflected in continuous slide in the share prices of the two companies, sources said.

African telecom giant MTN's share price fell to a three- month low of 118 rand yesterday, while shares of RCOM has also dropped by about a quarter in the last three months.

RCOM shares were trading at Rs 398.65, down 4.72 per cent on the Bombay Stock Exchange in morning trade today.

Reliance Communications and MTN had announced the start of 45-day long exclusive discussions on May 26, which is scheduled to end on Tuesday next week, July 8.

Sources in the know of development said that the two sides are discussing the possibility of extending the agreement by 2-3 weeks amid indications the same could be spelled out in the coming days.

Reliance Communications officials declined to comment on the development.

RIL had earlier written a letter to both the companies asserting its right of first refusal on majority stake in Reliance Communications, but these claims are being contested by the Anil Ambani group.