MTN, R-Comm to discuss deal prospects on July 21

By Sandeep Gurumurthi, CNBC TV18

MTN-Reliance Communication talks have been extended to July 21 from July 10. MTN board may discuss prospects of a possible deal. The board may also discuss 45-day exclusivity talks with R-Comm.

Just when everybody thought that the deal might falter, here comes a statement from MTN saying that the exclusivity period for talks has been extended by two-weeks to the July 21. It gives both Reliance Communications and MTN more time to look at alternate structures.On June 13 RIL had claimed that there exists a right of first refusal on sale of RCOM. Both sides want to talk but the atmosphere is too hostile and so a settlement looks unlikely atleast as of now.

 MTN is now considering a structure wherein R-Comm may go in for a direct purchase in MTN as against the reverse merger, which was talked about earlier. Secondly, it gives Mukesh Ambani Group and Anil Ambani Group possibly sometime to look at a settlement.

Earlier, Anil Dhirubhai Ambani Group (ADAG) had written to Reliance Industries Ltd (RIL) saying that they are open to clarifying that out on this particular issue in the week starting July 14.