Will MTN extend R-Comm exclusivity deadline?

TIME OUT? With just five days to go for the MTN deal, the dispute between Mukesh and Anil has taken a new twist.

Other stories in the section:

Own a luxury car? Pay more for fuel

Oil Minister says the rich can afford and must pay more for fuel.

• Inflation curb, a top priority for new RBI governor

• Oil falls on slowing US demand, dollar

Featured Blog

Rajdeep Sardesai

Tale of Two Azmis

Featured Slideshows

Related Headlines

powered by

• Still talking, Anil Ambani group keeps MTN engaged
• Ambani vs Ambani: Anil's group says RIL foiling deal
• Ambani brothers at war again: Is MTN rattled?

Keywords: Mukesh Ambani, Anil Ambani

New Delhi: The countdown has begun. With just five days to go before the exclusivity period for talks between Reliance Communications and MTN expires, the buzz now is that MTN may extend the deadline. But both sides continue to maintain a stoic silence.

It was on May 26 that Reliance Communications and MTN entered into a 45-day period of exclusive talks. That comes to an end on July 8. There is still no fix yet on whether the deal will be struck by then.

There is no official response on whether Mukesh Ambani's right of first refusal (ROFR) claim on sale of Reliance Communications shares has been resolved. But the buzz now from sources in the ADAG camp is that the exclusivity period may be extended by atleast a couple of weeks.

But when contacted an MTN spokeswoman said, “MTN cannot comment on this issue at the moment and would prefer that you wait for the 45-day exclusivity period to end."

Now, if the extension were to come through, it could be for two reasons. As suggested by international media reports, the deal structure may now be veering towards Reliance Communications picking up a 34 per cent stake in MTN.

That would make MTN a subsidiary of Reliance Communications and would also take care of potential litigation from MDAG as there is no sale of promoter equity in Reliance Communications.

The other reason for an extension would be to buy time so that both ADAG and MDAG reach some kind of settlement on the ROFR claim.

The prolonged silence from both camps and ADAG, not moving the court despite threatening to do so, has fuelled rumours of a possible settlement in industry circles. So, as MTN says, all we can do now is wait.