Mkt won't take Rel Comm, MTN deal negatively

CNBC-TV18s Executive Editor, Udayan Mukherjee - Reliance Communication and MTN is a complex deal and its not as easy to take a call on how it impacts the Rel Comm stock positively or negatively because when it was Bharti it was a linear deal. Bharti was buying that company so people could quantify how much Bharti had to pay and what it would do its balance sheet, what it would do to consolidated earnings and the market took a call that it was not positive for Bharti so the stock went down.
 
But this one is a reverse deal; a) first one has to ask whether if this deal goes through as it’s not a done deal yet. If the deal goes through then at what price MTN management makes that open offer back to Rel Comm shareholders and that is a bit fuzzy, we don’t know at what price the Open Offer will come through, if it does as it will if the deal gets through.
 
I am also not clear of how the deal will eventually work for the shareholders out here because of the reverse merger and so trying to work out numbers and figure out this will not be as negative as it was perceived to be for Bharti because of the nature of the deal, which is being structured. I am not completely sure about how its affects and also because we don’t know the likely open offer price.
 
So it’s a little unclear but the way the deal is being structured I think market will not take it as negatively as it did to Bharti Airtel because that was one large company acquiring a larger company, which the market feels nervous about. But we are still to understand the entire ramifications of this deal.