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Showing posts with label MTN deal. Show all posts
Showing posts with label MTN deal. Show all posts

Wednesday, June 25, 2008

Reliance MTN Deal to be finished by the next month

The much hyped deal between ADAG group headed by Anil Ambani and MTN based in south africa is expected to be completed by next month, mtn sources told. MTN previously failed to strike a deal with the Bharti group which by then would have created the sixth largest telecom company. After the failure of these talks, Anil has almost managed to convince the MTN shareholders of the benefits arising out of the synergy. As per the deal, Anil Ambani will swapping his shares in Reliance communications for MTN shares, which means post the deal, Anil will be holding a one-third holding in Reliance communications and a 34% holding in MTN. The deal however faced some trouble as Mukesh Ambani raised doubts over the rights of first refusal which according to him belongs to RIL in accordance with the agreements signed between the two brothers when they decided the split. This was however rejected by Anil and he is believed to go to court challenging Mukesh`s claim. Mukesh even went to the extent of informing MTN about his rights and almost stopped the deal. But MTN seem to have full confidence in Anil and further negotiations are on!!