Reliance Comm starts discussions with MTN

NEW DELHI: Within a day of Bharti Airtel pulling out of negotiations to acquire an estimated 50 billion dollar MTN, Anil Ambani group company Reliance Communications is understood to have started discussions for a possible tie up with the South African telecom entity.

Reliance Communications officials both in (Delhi and Mumbai) could not be contacted for comments despite numerous attempts.

Bharti Airtel decided to pull out of the negotiations as MTN had proposed a structure which would have made Bharti Airtel a subsidiary of the South African company, contrary to the agreed terms between the two firms.

Meanwhile, the Wall Street Journal today reported that the Reliance Communications is in talks to combine with South African cell phone company MTN Group, after Bharti Airtel pulled out of negotiation with MTN.

Quoting people familiar with the matter the daily said "the discussions may go nowhere and precise details of the Reliance tie-up being discussed could not be learned, though one person said a deal may be structured as a purchase of Reliance by MTN."

The daily further added that a combination of MTN and Reliance Communications would create a global wireless juggernaut, larger even than developed-market giants such as AT&T Inc.

Even amidst Bharti and MTN being engaged in talks, rumours had surfaced about rival bids being launched by other entities, including China Mobile, Indian-origin Arun Sarin-led British telecom giant Vodafone, Egypt's Orascom, UAE's Etisalat, Germany's Deutsche Telekom and Russia's Vimpelcom.

However, all these rumours came to nothing with all the rumoured suitors mostly denying any such moves.