MTN may resume discussions with Bharti - Caught in the middle between warring Ambani brothers

By Harsha Pramod @ Tuesday, July 15, 2008 7:30 AM

Section - Business/Financials

MTN may be making fresh efforts to revive talks with Bharti Telecom, reports Business World.

Bharti and MTN were close to a deal in May, but the talks failed, following which MTN entered into exclusive discussions with Reliance Telecom (RCOM) owned by Anil Ambani. The exclusivity period expired on 7 July, and the companies have extended the exclusivity period up to July 21.

According to market speculation, the current discussions may have run into rough weather, prompting MTN to consider discussions with Bharti again. The dispute with Mukesh Ambani-owned Reliance Industries Ltd (RIL), is believed to have miffed MTN, which got caught in the legal battle between the Ambani brothers.

MTN is expected to definitely strike a deal with someone, even if not with RCOM. A possible truce between the Ambani brothers may help alleviate the complications surrounding the deal. They are believed to consider a deal with Bharti to be less complicated than one with RCOM. However, experts believe a formal discussion with Bharti immediately is unlikely. X

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